The BSE benchmark Sensex on Monday opened in green ahead of a key RBI board meeting.
The BSE benchmark Sensex on Monday opened in green ahead of a key RBI board meeting. Sensex started at 35,647.62 and the NSE Nifty50 at 10,731.25. In the first few minutes of trade, the 30-share Sensex traded at 35,647.62, up 190.46 points or 0.54 per cent and the Nifty50 at 10,724.85, with a gain of 42.65 points or 0.40 per cent.
At 9:34 Sensex was up by 173.86 points or 0.49% up to reach at 35,614.72 points while Nifty was at 32.20 points or 0.30% to trade at 10,712.90 points.
Financial markets, banks and corporate houses are eagerly waiting for Monday’s crucial Reserve Bank of India board meeting. It is likely to set the tone on sensitive issues like easier loan sanctions to micro, small & medium enterprises (MSME), relaxation of prompt corrective action (PCA) on weaker banks, and fund transfer to the government.
The central bank and the government have been warring over these issues for nearly a month.
RBI, which had taken a stern stance, is likely to relax the PCA norms only on those banks that are showing signs of a turnaround through faster resolution of non-performing assets (NPAs) and shedding of non-core assets. The other option being weighed is a committee being jointly set up by the government and the RBI to access the merits of the corrective action undertaken by the ailing banks. Last year, 11 public sector banks were brought under the RBI’s revised PCA framework which set tougher norms and banned them from lending.
Even on the issue of capital transfer to the government, the apex bank may be ready to discuss with an ‘open’ mindset. RBI is considering allowing the government to utilise a part of its reserves, a source told DNA Money.
Meanwhile, Asian markets mostly rose Monday but investors were keeping a close eye on the China-US trade row after Donald Trump's optimistic comments on a possible deal were offset by a war of words between his vice president and Xi Jinping.
The mood across the region was a little calmer at the start of the week, providing some much-needed support after the volatility of seven days ago, with oil stabilising and the Federal Reserve tempering fears about its plans for interest rate hikes.
US markets provided a positive lead after Trump said Friday that Beijing had made overtures toward resolving their trade war, meaning he might hold off imposing another round of tariffs.
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 "Ahead of RBI board meet, Sensex and Nifty open in green")
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