Markets spike up ahead of the RBI policy review announcement

The Indian benchmark equity indices have spiked up in the mid morning session just ahead of the RBI’s review of credit policy. Though, RBI is not expected to cut interest rates at its review due to inflation worries, but it may cut the cash reserve ratio (CRR) for banks as a way to relieve tight liquidity. The RBI review points on Monday admitted its own growth outlook has weakened but is more worried about inflation remaining a risk to the system. Though, the rate sensitives have taken the back seat but any surprise from the apex bank may lift their sentiments and help them to recover. Meanwhile, Capital Goods, Oil & gas, consumer durables were taking the lead, though the broader indices were trading mixed.

The BSE Sensex is currently trading at 16,777.98, up by 26.25 points or 0.16%. The index has touched a high and a low of 16,834.82 and 16,770.01 respectively. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading on a mixed note; the BSE Mid cap index was trading lower by 0.14%, while Small cap index gained 0.10%.

The top gaining sectoral indices on the BSE were, CG up by 1.02%, Oil and Gas up by 0.68%, CD up by 0.59%, IT up by 0.37% and TECK up by 0.36%.

While, Realty down by 1.28%, Bankex down by 0.63%, Auto down by 0.59%, Metal down by 0.46% and Power down by 0.40% were the only losers on the index.

The top gainers on the Sensex were L&T up by 1.75%, RIL up by 1.33%, Cipla up by 1.01%, Wipro up by 0.99% and HDFC up by 0.96%.

On the flip side, Maruti Suzuki down by 2.16%, DLF down by 1.73%, NTPC down by 1.59%, HeroMotocorp down by 1.36% and ICICI Bank down by 1.06% were the top losers on the Sensex.

Meanwhile, the central government in its bid to boost agriculture production and productivity in various parts of the nation, released Rs 762.68 crore under the Macro Management of Agriculture (MMA) scheme to various States and Union Territories for the development of agriculture till December 30 of the current financial year, while total allocation for the current financial year is to the tune Rs. 780 crore. The scheme was unveiled in 2000-01 by assimilating 27 centrally sponsored schemes, moving away from a programmatic to a macro management mode of assistance to the States in the form of Work Plans prepared by the States and implemented in a spirit of partnership with the States.

To improve its efficacy in supplementing and complementing the efforts of the States towards enhancement of agricultural production and productivity, the MMA scheme was further revised in 2008-09. The revised scheme comprises 10 sub-schemes relating to crop production and natural resource management. These include integrated cereal development programmes, integrated development programmes for pulses and oilseeds and sustainable development of sugarcane based copping system, balanced and integrated use of fertilizers, promotion of mechanization of agriculture among small farmers, national watershed development project for rain-fed areas, soil conservation and reclamation and development of alkali soils.

The role of the scheme was redefined to avoid overlapping and duplication of efforts and to make it more relevant to the present agriculture scenario in the States to achieve the basic objective of food security and to improve the livelihood system for rural masses.

The S&P CNX Nifty is currently trading at 5,052.40, higher by 6.15 points or 0.12%. The index has touched a high and a low of 5,072.00 and 5,049.80 respectively.  There were 22 stocks advancing against 28 declining one’s on the index.

The top gainers of the Nifty were BPCL up by 1.93%, L&T up by 1.86%, Ambuja Cement up by 1.61%, Reliance up by 1.32% and HDFC up by 1.06%.

Maruti Suzuki down by 2.04%, DLF down by 1.71%, Hero MotoCorp down by 1.62%, Reliance Communication down by 1.58% and NTPC down by 1.42% were the major losers on the index.

In Asia, majority of bourses remained closed for Lunar New Year holiday, while the benchmarks in Indonesia and Japan are trading on a positive note; Jakarta Composite was up 0.34% and Nikkei 225 gained 0.26%.