Markets in green on RBI policy review

Markets have gained following a credit policy which is in-line with expectations. The Sensex is now up 51 points at 18,071. Nifty is at 5,428 - up 10 points.

The Reserve Bank of India (RBI) today increased its key benchmark rates to rein in a rising inflation rate and demand pressure. The cash reserve ratio, however, has been kept unchanged.

According to the RBI's first policy review, the monetary actions are expected to moderate inflation by reining in demand pressures and inflationary expectations, maintain financial conditions conducive to sustaining growth, generate liquidity conditions consistent with more effective transmission of policy actions and reduce the volatility of short-term rates in a narrower corridor.

Auto stocks have held on to gains. Bajaj Auto and Hero Honda have jumped 2.5% each to Rs 2,589 and Rs 1,8567, respectively.

Tata Motors has gained 2% at Rs 834. Ashok Leyland, Mahindra & Mahindra and Maruti Suzuki have added over 1% each.

Among realty stocks, HDIL is leading with gains of 2.3% to Rs 262. Anant Raj Industries, D B Realty, Sobha Developers and Parsvnath Developers have also added around 1% each.

Banking stocks have recoevered as well. IDBI Bank and Bank of India have jumped over 1% each to Rs 121 and Rs 398, respectively.

SBI has added 1% to Rs 2,431. HDFC bank and ICICI Bank are marginally in green at Rs 2,061 and Rs 918, respectively.

Among other banking winners are Punjab National Bank, Yes Bank and Canara Bank.