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Sensex Slips Ahead of RBI Policy Meet Outcome

Sensex Slips Ahead of RBI Policy Meet Outcome
The BSE benchmark fell ahead of the Reserve Bank of India's policy meet outcome.
 
The 50-share Nifty was also trading on a subdued note, hovering around its important psychological level of 8,650.
 
Reserve Bank Governor Raghuram Rajan is expected to hold repo rate unchanged at 7.50 per cent in his monetary policy announcement at 11 a.m. on Tuesday. Status quo on interest rates is anticipated because Dr Rajan has already cut repo rate twice this year, both times outside the policy meetings, surprising markets.
 
However, there's speculation that the RBI may slash CRR, or the cash reserve ratio, in a bid to push banks into lower lending rates. India's biggest lenders such as state-run SBI and private sector lender ICICI Bank have not lowered lending rates despite back-to-back repo cuts this year.
 
Rate sensitive stocks such as banking, auto and real estate stocks which would have a direct impact on the outcome of meeting were trading on a subdued note ahead of the outcome of the meeting. Banking index on the NSE, Bank Nifty was trading marginally higher. While, auto and realty stocks were trading with a negative bias.
 
T S Harihar, chief executive and founder of HRBV Client Solutions Private Ltd said, "I continue to be cautious on PSU banks. Fundamentally nothing much has changed. This quarter may throw up negative surprise. Pharma looking much better."
 
At 10:40 a.m., the Sensex was up 6 points at 28,510 while Nifty was down 4 points at 8,655.