Indian bonds gain after RBI signals shift to growth

MUMBAI Tue Dec 18, 2012 11:17am IST

Related Topics

Stocks

   

MUMBAI Dec 18 (Reuters) - Indian bond prices gained on Tuesday after the Reserve Bank of India kept both interest rates and the cash reserve ratio unchanged as the central bank signalled a shift to focus on growth, raising expectations for a rate cut as early as January.

The 10-year bond yield fell 3 basis points to 8.14 percent from levels before the decision after initially gaining 1 bp.

The RBI's decision to also keep the cash reserve ratio on hold has raised expectations for more bond purchases via open market operations.

However, the BSE stock index fell 0.2 percent as of 0538 GMT. Banks were among the leading decliners, with State Bank of India down 1.8 percent. (Reporting by Mumbai markets team)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage