The total turnover on BSE amounted to Rs 2541.20 crore, higher than turnover of Rs 2203.48 crore registered during the previous trading session.
Bank stocks were mixed after the Reserve Bank of India (RBI) kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%.
Among public sector banks, Bank of Baroda (down 2.87%), Bank of India (down 2.43%), Punjab National Bank (down 2.08%), Andhra Bank (down 1.84%), Canara Bank (down 1.79%), Allahabad Bank (down 1.54%), State Bank of India (down 1.49%), Union Bank of India (down 1.4%), Punjab & Sind Bank (down 1.11%), IDBI Bank (down 0.95%), Syndicate Bank (down 0.68%), UCO Bank (down 0.6%), Indian Bank (down 0.48%), Bank of Maharashtra (down 0.34%), Dena Bank (down 0.15%) and Central Bank of India (down 0.06%), edged lower. Vijaya Bank (up 0.11%), Corporation Bank (up 0.33%) and United Bank of India (up 0.72%), edged higher.
Among private sector banks, Axis Bank (down 2.32%), HDFC Bank (down 1.11%), Federal Bank (down 0.87%), IndusInd Bank (down 0.74%), Yes Bank (down 0.6%), Kotak Mahindra Bank (down 0.39%) and City Union Bank (down 0.11%), edged lower. RBL Bank rose 0.14%.
ICICI Bank fell 1.23%. The bank announced after market hours yesterday, 6 December 2016, that the committee of executive directors of the bank is scheduled to have a meeting on 9 December 2016, to consider fund raising in single/multiple tranches in any currency through public/private placement by way of issuances of debt instruments etc. for the remaining period of the financial year ending 31 March 2017 (FY 2017).
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, 7 December 2016, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%. Consequently, the reverse repo rate under the LAF remains unchanged at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 6.75%.
The decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5% by Q4 March 2017 and the medium-term target of 4% within a band of plus or minus 2%, while supporting growth.
Auto shares were mixed. Eicher Motors (up 4.07%), TVS Motor Company (up 1.50%), Hero MotoCorp (up 0.99%), Tata Motors (up 0.79%), Mahindra & Mahindra (up 0.46%) and Escorts (up 0.25%), edged higher. Maruti Suzuki India (down 0.42%), Bajaj Auto (down 0.87%) and Ashok Leyland (down 1.73%), edged lower.
Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Overseas, European stocks opened higher today, 7 December 2016, as investors shifted their focus to an upcoming meeting of the European Central Bank (ECB), where they expect further monetary stimulus to be announced. Most Asian shares edged higher as investors covered short positions and looked to the upcoming policy meeting of the European Central Bank (ECB) for comfort after a referendum defeat tipped Italy into political turmoil. US stocks registered modest gains yesterday, 6 December 2016, with the Dow Jones Industrial Average finishing at an all-time high for a second day in a row.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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