After ruling at historic highs for two consecutive sessions, the market paused to catch some breath with both the Sensex and the Nifty coming down from record highs.
RBI will likely strike a less hawkish tone while leaving interest rates unchanged at a policy meeting on Wednesday, according to analysts, as inflation is running well.
Gold held steady to keep most of its gains from the previous session, with the dollar slipping after minutes of the U.S. Federal Reserve's last policy meeting downplayed.
The Reserve Bank "killed several birds with one stone" in its policy meet on April 6 by not sucking out excess liquidity with its permanent tool like OMO and CRR hike.
Even though the RBI left the policy rates unchanged, borrowers can expect lower rates with HDFC Bank saying there is more room for banks to lower lending rates.
INDIAN HOTELS COMPANY
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