Indian market ends flat after RBI keeps rates intact, cash withdrawal limits to be removed in p
Media reports quoted RBI Governor Urjit Patel as saying that there is still scope for lending rate to come down.
The BSE Sensex closed in the red, down 45.24 points at 28289.92 while NSE Nifty was up 0.75 points at 8769.05.
The RBI cited global uncertainties and inflation as reasons for retaining the rates.
The Monetary Policy Committee (MPC) on Wednesday also changed its policy stance to neutral from accommodating.
The RBI in its statement said, "The committee decided to change the stance from accommodative to neutral while keeping the policy rate on hold to assess how the transitory effects of demonetisation on inflation and the output gap play out."
The central bank on Wednesday has also said that the weekly limit on cash withdrawal from savings accounts will be phased out in two stages beginning from Feb 20, 2017.
From Feb 20, the weekly withdrawal limit will be raised to Rs 50,000 and from Mar 13, there will be no limit on cash withdrawal, media reported.
On Wednesday, HDFC Bank and SBI were two key stocks that reported gains while ICICI Bank, Axis Bank and HDFC declined.
Image: Wikimedia Commons
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