Autos and the banking index are trading flat while realty stocks have advanced ahead of the RBI monetary policy

Indian stock market is trading on a flat to positive note ahead of the RBI Policy. Nifty is up 18 points to 10,966 while the Sensex has gained 65 points and is trading at 37,042.

Economists expect the RBI to cut the repo rate by 25 basis points. If there is a rate cut, this will be the fourth consecutive repo rate cut.

RBI is also likely to announce a few measures to address the liquidity concerns. NBFCs have been facing a cash crunch that has spilled over to other sectors like auto.

In July, RBI Governor Shaktikanta Das said in an interview that the switch to accommodative stance in June policy review amounted to 25 basis points cut.

Amar Ambani, President & Research Head, Institutional Equities, YES Securities said that they expect to see a downward revision to RBI’s FY20 GDP growth forecast of 7 percent.

Ahead of the policy decision, the S&P BSE Auto index is trading flat with Hero MotoCorp jumping close to 2 percent followed by TVS Motor, Exide Industries and Ashok Leyland while on the other hand, Mahindra & Mahindra, Motherson Sumi Systems and Tata Motors are trading in the red.

S&P BSE Finance is also flat in this morning session. The top gainers are Allahabad Bank, Bajaj Finance, Bajaj Finserv, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dhanalakshmi Bank, J&K Bank, IndusInd Bank, Karnataka Bank and United Bank of India.

Bank Nifty is trading on a flat to negative note. YES Bank jumped over 7 percent followed by IndusInd Bank, ICICI Bank, Bank of Baroda and PNB. The stocks that are trading in the red include State Bank of India, Kotak Mahindra Bank and HDFC Bank.

Nifty Realty added a percent ahead of the RBI policy, led by Prestige Estates, Sobha, Unitech, DLF, Godrej Properties and Phoenix Mills.

India VIX is down 1.43 percent and is trading at 15.89 levels.

1,103 stocks advanced and 474 declined while 504 remained unchanged on the NSE. On the BSE, 1095 stocks advanced, 540 declined and 70 remained unchanged.

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