After opening weak, Indian Indices have remained muted during the morning trading session. The Reserve Bank of India (RBI) has in its monetary policy, maintained the status quo on benchmark interest rates. While auto and pharma stocks are leading the gainers; metal and IT stocks are trading in the red.
The Reserve Bank of India (RBI) has maintained status quo on all major interest rates in its bi-monthly monetary policy. The central bank has said that it has taken this decision keeping in mind the evolving macroeconomic situation. The repo and reverse repo rates have been unchanged at 8% and 7% respectively. The Cash Reserve Ratio (CRR) and the Marginal Standing Facility (MSF) have also been maintained at 4% and 9% respectively. The Statutory Liquidity Ratio (SLR) has also been left unchanged. The RBI has said that it will continue to closely track inflation while noting that industrial activity has moderated somewhat after the unexpected upturn in Q1 2014-15.
Majority of the automobiles stocks are trading strong today, with Eicher motors and Tube investments being among the leading gainers in the pack. As per the financial daily, Hero MotoCorp, has increased the prices of their two-wheeler products. Ahead of the festive season, the company has increased prices of some vehicles in two wheeler segment from 22nd September onwards. Reportedly, as per the company official, the company has raised the prices of some of the models by Rs 250-550. This has been done to partially to recover input costs and also to offset the cascading effect of the consistently-rising diesel costs. The increase in the diesel prices has also impacted costs of in-bound and out-bound logistics, power generation and overall transportation. The company has increased the prices of vehicles of various segments depending on various criteria. For example, prices of volume-driving scooters such as Activa, Dio and Aviator have been changed in the band of Rs 100-200 and so on. Hero MotoCorp was trading up by 0.7% at the time of writing.