Markets come to terms with RBI action

Markets reacted positively to the first quarter review of the Monetary Policy by the RBI, which kept indicative policy rates unchanged.

The Bombay Stock Exchange (BSE) 30-share index gained 92.50 points or 0.54 per cent at 17236.18 led by oil and gas which gained 1.80 per cent followed by realty 1.17 per cent. However, the sectors which led the rally on Monday, power and banks, ended in the negative territory. Other broader indices BSE 100 gained 0.52 per cent, BSE 200 and BSE 500 were up by 0.51 per cent each. On the NSE, the 50-Share Nifty closed up by 29.20 points or 0.56 per cent at 5229.

However, the rupee closed lower at 55.6450/6550 a dollar compared to its previous close of 55.5850/5950 on Monday. It moved in a wide band of 55.40-55.85.

IT stocks up

Our Special Correspondent in Chennai adds:

IT stocks witnessed hectic buying after the RBI decided to restore the erstwhile stipulation of allowing credit of 100 percent foreign exchange earnings to the exchange earner’s foreign currency accounts.

Shares of Wipro ended higher by Rs.5.70 to Rs. 339.90. While Infosys went up by Rs.17.95 to Rs.2,227, TCS was up by Rs.8.95 to close at Rs.1,240.65 on the BSE.

The relaxation was subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into rupees on or before the last day of the succeeding calendar month after adjusting for utilisation of the balances for approved purposes or forward commitments. The RBI also allowed exporters to cancel and rebook forward contracts up to 25 per cent of their total contracts for hedging.