)
Shares of automobiles companies are trading lower by up to 3% after the Reserve Bank of India (RBI) Governor Raghuram Rajan left interest rates unchanged for the fifth time in a row at the central bank’s bi-monthly policy review today.
Mahindra and Mahindra (M&M), Bajaj Auto, Tata Motors, Eicher Motors, Maruti Suzuki India and Hero MotoCorp are down 1-3% on the National Stock Exchange (NSE).
CNX Auto index, the largest loser among the sectoral indices, was down 1% or 88 points at 8,468 as compared to 0.32% decline in the benchmark CNX Nifty at 1249 hours. The auto index hit a low of 8,447 in intra-day deal so far.
“The central banker continued to maintain its policy stance. This was in line with our expectation. The central banker may be of the opinion that; the favorable base effect last year, rather than the actual price moderation, may be causing the CPI moderation. Having said that, the central banker has given an indication of change in policy stance (even out of schedule) was the moderation in inflation to exceed expectation,” said Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mutual Fund on today’s monetary policy.
“We believe that RBI may be waiting to assess the CPI inflation data which is to be released in mid-Dec. This may enable them to resolve on the nature of inflation (base effect or supply led) and provide the needed window to reproach the policy,” she adds.
Among individual stocks, M&M has dipped nearly 3% to Rs 1,260 on NSE. On Monday, the stock was down 2% after the company reported weak sales numbers for the month of November 2014.
Bajaj Auto (Rs 2,601), Tata Motors (Rs 530), Eicher Motors (Rs 14,382) and Maruti Suzuki India (Rs 3,361) are down 1% each.
Mahindra and Mahindra (M&M), Bajaj Auto, Tata Motors, Eicher Motors, Maruti Suzuki India and Hero MotoCorp are down 1-3% on the National Stock Exchange (NSE).
CNX Auto index, the largest loser among the sectoral indices, was down 1% or 88 points at 8,468 as compared to 0.32% decline in the benchmark CNX Nifty at 1249 hours. The auto index hit a low of 8,447 in intra-day deal so far.
“The central banker continued to maintain its policy stance. This was in line with our expectation. The central banker may be of the opinion that; the favorable base effect last year, rather than the actual price moderation, may be causing the CPI moderation. Having said that, the central banker has given an indication of change in policy stance (even out of schedule) was the moderation in inflation to exceed expectation,” said Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mutual Fund on today’s monetary policy.
“We believe that RBI may be waiting to assess the CPI inflation data which is to be released in mid-Dec. This may enable them to resolve on the nature of inflation (base effect or supply led) and provide the needed window to reproach the policy,” she adds.
Among individual stocks, M&M has dipped nearly 3% to Rs 1,260 on NSE. On Monday, the stock was down 2% after the company reported weak sales numbers for the month of November 2014.
Bajaj Auto (Rs 2,601), Tata Motors (Rs 530), Eicher Motors (Rs 14,382) and Maruti Suzuki India (Rs 3,361) are down 1% each.
