Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
The Indian sovereign bonds traded flat Tuesday ahead of the Reserve Bank of India’s (RBI) first 2-day bi-monthly monetary policy meeting of 2017, scheduled to be held on February 7-8.
The yield on the benchmark 10-year bonds, which moves inversely to its price, remained flat at 6.41 percent, the yield on long-term 30-year note hovered around 7.04 percent while the yield on short-term 2-year note rose 1/2 basis point to 6.25 percent by 07:00 GMT.
A conservative fiscal policy, easing inflation trajectory and short-term risks to growth keep the door open for a further easing by the RBI. But it will be a close call. As a base case, we look for a 25 basis points rate cut in the repo rate to 6.0 percent on Wednesday.
Since the December policy meeting, CPI inflation is well-contained. Decemebr inflation eased to 3.4 percent y/y, easing from 5.2 percent in the third-quarter. January inflation, due later this month, is also expected to stay at sub-4.0 percent as food prices remain tame.
Apart from a busy state election calendar, there is considerable uncertainty over the impact of demonetization on growth. Implementation of the Goods and Services Tax (GST) is also pending for the second half of the year, reported DBS Bank in its research note.
Lastly, investors are also eyeing the INR110 billion worth of government bonds, to be auctioned by the central government on February 10 through multiple price based auction.
Meanwhile, the 30-share benchmark Sensex traded 0.25 percent lower at 28,367.08, while the 50-share benchmark Nifty futures traded 0.16 percent or 14.15 points down at 8,786.20 by 07:10 GMT.
