Rate sensitive shares have rebounded after yesterday's losses and are among the top gainers in early trades ahead of the Reserve Bank of India (RBI)'s third quarter review of Monetary Policy for 2013-14 at 11:00 AM today.
The Reserve Bank of India (RBI) is expected to keep interest rates unchanged for the second time in six weeks on Tuesday, with Governor Raghuram Rajan expected to strike a hawkish tone on inflation that is easing but remains high.
Investors are worried that rates will stay high for longer after a RBI panel last week proposed revamping the way monetary policy is made, including using consumer prices as a benchmark for targeting inflation.
Bank shares are among the top gainers in early trades with ICICI Bank, SBI and Axis Bank are up over 1%.
In the auto pack, Tata Motors, Maruti Suzuki, Bajaj Auto and Hero MotoCorp were up 0.4-1%.
