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Markets continued its upward movement this afternoon with heavyweights buoying the indices up half a per cent each. The BSE Sensex was up 117 points at 19,294. Nifty was up 32 points at 5,841.
Earlier in the day, the Sensex slipped to a low of 19,085 after the Reserve Bank of India kept policy rate unchanged at 7.25% and cash reserve ratio (CRR) at 4%.
In the mid-quarter review of the monetary policy held today, the Reserve Bank of India (RBI) kept key policy rates and the Cash Reserve Ratio (CRR) unchanged. However, the guidance given was that “a durable receding of inflation” will open up space for further easing of the monetary policy.
The repo rate stands at 7.25% while the reverse repo rate stands at 6.25%. The CRR remains at 4% of banks Net Demand and Time Liabilities (NDTL).
According to recent data, exports fell 1.1% to $24.5 billion in May this year compared to $24.7 billion in the same month last year, official data showed today. Imports, on the other hand, rose 6.9% to $44.64 billion against $41.7 billion over the period. Despite government raising import duty on gold to 8% from 6%, import of yellow metal almost doubled to $8.4 billion in May from $4.4 billion.
Back home, the rupee appreciated after the release of the mid-quarter review of the monetary policy statement in which the Reserve Bank of India (RBI) kept the repo rate unchanged at 7.25%.
Meanwhile in Asia, bourses extended gains, with Japanese stocks staging a strong rebound from a weak start as many major exporters climbed on the yen’s retreat. Nikkei surged 2.7% at 13,033. Hang Seng and Straits Times went up 0.7-1.2% each.
BSE auto index surged 1.3% at 10842. Capital goods, healthcare and oil & gas indices were up 0.4-1% each. On the other hand, weakness was noticeable in metal and realty shares. BSE metal index has slipped 0.5% at 7,897. The realty, PSU and IT indices are also marginally in the red.
Hindalco slipped 1.7% at Rs 102. Sterlite was down 1.6%, followed by Dr Reddy's, Coal India and GAIL. TCS and Wipro from the IT space shed half a per cent each. Tata Motors was flat at Rs 298.
On the other hand, Mahindra & Mahindra added 5% to Rs 996. Shares of Mahindra Group listed companies such as Mahindra and Mahindra, Mahindra Ugine Steel Company, Mahindra Forgings and Mahindra Composites have rallied up to 10% after entering into a share-swap arrangement with Spain’s CIE Automotive to create a global auto component manufacturer.
