Sensex erases early gains, drops 50 points; Nifty below 11,750; Suzlon jumps 11%

NEW DELHI: Domestic stocks edged higher in Monday’s trade, with the benchmark Sensex rising over 100 points and the NSE Nifty reclaiming 11,750, only to reverse gains as reports emerged that Viral Acharya has resigned as the RBI Deputy Governor.

Crude prices jumped amid US-Iran tensions while Asian stock markets remained largely tepid, weighing ondomestic stocks.

At 10 am, the 30-pack Sensex was trading at 39,130.84, down 63.65 points, or 0.16 per cent. The index had gained over 100 points in early trade.


The NSE barometer Nifty was trading below 11,750.

A total of 17 of 30 Sensex stocks were trading in the green.

Bajaj Auto, Hero MotCorp, Tech Mahindra, ONGC and Reliance Industries were among the top losers in the Sensex basket of stocks.
IndusInd Bank, Larsen & Toubro, Bharti Airtel, Asian Paints, State Bank of India and Yes Bank were among the top gainers in the Sensex pack.

Most sectoral indices were in the green, but oil & gas, energy and auto pack were down almost 1 per cent.

Meanwhile, RBI's Deputy Governor Viral Acharya has resigned six months ahead of the scheduled end of his term.

Analysts said Acharya's will add to the dovish tone to RBI MPC.

"Viral Acharya's resignation adds more dovish tone to RBI MPC as he has maintained a hawkish stance during most of the meetings even after agreeing to the rate cut," said Sameer Kalra, Founder of Target Investing.

"The bond and stock market should react positively to this news, but currency might have an initial negative reaction. We look forward to more aggressive rate cuts from the RBI since MPC minutes reveal that focus is on growth now," Kalra added.