Sensex stagnates as fiscal reform hopes recede

Sensex stagnates as fiscal reform hopes recede

Reuters Market Eye - The BSE Sensex is flat, while the 50-share Nifty falls 0.08 percent as hopes for fiscal reforms recede. Investors book profit after Friday's post-ECB rally on worries delayed fiscal reforms may prevent the RBI from lowering interest rates

Oil Minister S. Jaipal Reddy said on Friday India has no immediate plan to raise domestic fuel prices.

Fiscal consolidation steps is seen as key for any RBI action. Banks hence among leading decliners: ICICI Bank (ICBK.NS) down 1.2 percent, while State Bank of India falls 2 percent.

Bharat Heavy Electricals (BHEL.NS) falls 2.4 percent, hitting its lowest since October 2008, on renewed concerns of coal block cancellations after the controversial government sales process dubbed "Coalgate".

Tata Steel (TISC.NS) gains 1.7 percent after Citigroup upgraded the stock to "buy" from "neutral", citing attractive valuations.