RBI has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8 percent and cash reserve ratio of scheduled banks unchanged at 4 percent of net demand and time liabilities (NDTL).

ICICI Bank gained 0.4 percent and State Bank of India rose 0.2 percent while HDFC and HDFC Bank declined 1-1.7 percent. Auto stocks remained under pressure; Tata Motors, Mahindra & Mahindra, Bajaj Auto, Hero Motocorp and Maruti Suzuki slipped 0.3-1.8 percent.

The Sensex fell 75.47 points to 28484.15 and the Nifty declined 22.95 points to 8532.95. About 1173 shares have advanced, 1258 shares declined, and 102 shares are unchanged on the Bombay Stock Exchange.

RBI says Liquidity conditions have eased considerably in Q3 of 2014-15 due to structural and frictional factors, as well as the fine tuning of the liquidity adjustment framework. “With deposit mobilisation outpacing credit growth and currency demand remaining subdued in relation to past trends, banks are flush with funds, leading a number of banks to reduce deposit rates. The main frictional source of liquidity has been the large release of expenditure/transfers by the government,” it adds.

Coustery : http://www.moneycontrol.com/news/local-markets/sensex-nifty-choppy-post-rbi-policy-icici-bank-rebounds_1242553.html

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