BSE Sensex up; RBI report targeting CPI seen hawkish

Reuters Market Eye - The BSE Sensex and the Nifty are up around 0.2 percent each. Bank Nifty fall 0.2 percent after a RBI report released late on Tuesday recommended consumer price inflation as the main inflation gauge and suggested lowering it to 8 percent within 12 months with an eventual target of 4 percent. State Bank of India is down 0.8 percent while ICICI Bank Ltd falls 0.4 percent.

The Reserve Bank of India should make managing inflation its main objective and set monetary policy by committee, a central bank panel has recommended, a shift that would bring its practices in line with many other central banks.

 

Biocon gains 1.8 percent, adding to Tuesday's 6.2 percent rise on optimism ahead of its December-quarter earnings later in the day.