Markets fail to cheer RBI rate cut
As per the experts, markets remained subdued following a slight caution on inflationary pressure due to the 7th pay commission award.
Mumbai: The equity markets remained highly volatile ahead of the announcement of the RBI monetary policy and closed the day with just marginal gains as the market participants had already priced in a 25 basis point cut in repo rate.
The Nifty gained 31.05 points or 0.36 per cent to end the day at 8,769.15 points or 0.36 per cent to close at 8,769.15 while the Sensex closed the day at 28,334.55, up 91.26 points or 0.32 per cent.
As per the experts, markets remained subdued following a slight caution on inflationary pressure due to the 7th pay commission award.
“The decision was likely a close call as RBI’s forecasts on CPI inflation for both end-FY17 and end-FY18 show inflation risks skewed to the upside despite the impact of the 7th Pay Commission not being factored in. Following Tuesday’s decision, the temptation would be to jump to the conclusion that the new governor will be decisively more dovish than his predecessor,” said Richard Iley.