Reserve Bank of india left key interest rate unchanged but reduced CRR by 0.25%; Sensex Tanks 204 Pts; Hurricane Sandy Pounds U.S. East Coast

Tuesday, Oct 30, 2012 Reserve Bank left key interest rate unchanged but reduced CRR by 0.25% RBI CUTS CRR BY 25 BPS, REPO RATE UNCHANGED   Showing concerns over hardening inflation, the Reserve Bank left key interest rate unchanged but reduced CRR by 0.25% to infuse additional liquidity of Rs 17,500 cr into the system. With today's changes CRR now stands at 4.25% while repo rate and reverse repo remain unchanged at 8% and 7% respectively.(SEE TOP VIDEOS) read more   CHIDAMBARAM SLAMS DEFIANT RBI ON RATES   The Finance Minister P Chidambaram was apparently upset over RBI's decision to leave interest rates unchanged on inflation concerns despite the government unveiling a five-year fiscal consolidation road map ahead of the policy. read more   RBI DISAPPOINTS MARKETS; SENSEX TANKS 204 PTS   Sensex today shed 204 points to close at over five-week low of 18,430.85 on selling in banks and other rate-sensitive stocks after RBI dashed hopes of a rate cut. Sensex rose by over 80 points in early trade on the back of hopes of a rate cut after the government yesterday announced a fiscal consolidation plan. Nifty was down 67.70 points to end 5,597.90. read more   LEAD STORIES HURRICANE SANDY: NY FLOODS, MILLIONS WITHOUT POWER   Prez Obama declared "major disaster" in New York state after storm Sandy smashed into East Coast, leaving at least 11 dead & over 6 mn without power. read more COASTAL TN, AP BRACE FOR CYCLONE 'NILAM' TOMORROW   Coastal districts of Tamil Nadu & Andhra Pradesh brace for a cyclonic storm that is to hit tomorrow, as incessant rains hit normal life in Chennai. read more TOP STORIES • India Inc disappointed, expects repo cut in Q3   • RBI ups March-end inflation projection to 7.5%   • RBI steeply hikes banks provisioning for CDR assets   • I-T probes alleged shell cos in Gadkari-promoted Purti   • Rupee belies expectations, gains 10 paise at 53.98/$   • HC dismisses Mumbai builder's petition against VAT   • Indian consumer confidence tops world   • Maruti Suzuki Q2 net drops 5.4% to Rs 227 cr   • Dr Reddy's Lab Q2 net up 32% at Rs 407 cr; beats street   • Mahindra Satyam Q2 net falls 21% to Rs 277 cr Q-o-Q   • Tata Teleservices reports Rs.183.71 cr loss   • LIC trims holding in 15 Sensex cos by $1 bn   • Section of Hyundai workers on strike   • Kingfisher revival plan: Mallya meets Aviation Secy   • All Nippon Airways launches Delhi-Tokyo daily service   • UBS India i-banking head Ashok Mittal resigns   • Govt clears India-Pak series; 1st ODI on Dec 25   • Pesky messages bothering Telecom Minister as well   • Mamata backs Anna, says Parl must be dissolved   • "Skyfall" breaks Bond's UK box office record   more stories TOP VIDEOS RBI Has Relaxed Stance, But Tried To Contain Expectations. RBI Will Have To Tweak Interest Rates In Q1CY13: Pronab Sen, Member, Planning Commission   RBI Has Taken A Cautious Stance Given Inflation. Growth Rate For FY13 Likely To Be Closer To 6%: C Rangarajan, Chairman, PMEAC   AT A GLANCE BSE 18430.85 -204.97 NSE 5597.9 -67.7 TURNOVER Rs. 168,656 cr BSE CASH Rs. 2,114 cr NSE CASH Rs. 10,357 cr NSE F&O Rs. 136,151 cr BULLION GOLD 31061 -33 SILVER 59556 +164 CRUDE NYMEX 85.89 +0.35 BRENT 108.79 -0.65 FOREX $ / Re 53.96 -0.12 £ / Re 86.773 +0.09 € / Re 69.943 +0.17 EVENTS TO WATCH 31 October Oil Ministry, RIL Meet On KGD6 Audit 1-2 November Morningstar Investment Conference 2012, Grand Hyatt, Mumbai 2 November CNBC-TV 18's India Business Leader Awards 2012, NCPA, Mumbai 2-3 November CII Institute Of Quality's 20th National Quality Summit, Vivanta By Taj, Bangalore 6 November U.S. Presidential Election

(Defending RBI's stance)"I think both the government and the RBI share concerns about growth and inflation. We are as much concerned about growth as inflation, only our balance will be shifting. And about the finance, if you are asking, about the ministers statement, then you should ask him." D Subbarao Governor, RBI (Slamming RBI's stance)"If the government has to walk alone to face the challenge of growth, we will walk alone. Government is doing its best to send a clear message that we are on the path of fiscal consolidation. It is my hope that everyone will read and understand government's commitment to fiscal consolidation." P Chidambaram Finance Minister "I still hold CRR is a waste for the economy. But anyway, it has been cut by 25 bps...But I do not think the 10 rate cuts that happened over the last few quarters helped in lowering inflation because today's inflation is largely cost pushed. It is not so much due to demand-pull. So, to try to address that with rate of interest as an instrument may not be very helpful." Pratip Chaudhuri Chairman, SBI