“The sharp pullback in April CPI inflation raises doubts on the central bank’s cautious policy outlook,” Radhika Rao, an economist for DBS Bank in Singapore, said in an email to clients. “Eyes are next on the June RBI review. An about-turn in policy is unlikely but policy guidance will be more neutral and balanced than April.”
The broader NSE index was up 0.45 percent at 9,443.50 as of 0615 GMT, while the benchmark BSE index was 0.46 percent higher at 30,320.91. Both indexes were not far from record highs hit last week. Meanwhile, the benchmark 10-year bond yield was down 8 basis points at 6.83 percent, after earlier falling to 6.82 percent, the lowest since April 17.
The yield for the new 10-year bond eased 12 basis points to 6.67 percent from the cut-off price set on Friday, when the debt was sold for the first time. Among individual share movements, Jindal Stainless Ltd rose as much as 5.90 percent to its highest in over nine years after the company announced its March-quarter results on Friday.
Among the losers, Idea Cellular Ltd fell as much as 6.28 percent after the company posted a net loss for the quarter ended March. ($1 = 64.1125 Indian rupees)