 "Sensex, rupee rebound as govt announces measures to control CAD")
Indian markets rebounded todayafter the Reserve Bank of India (RBI) chief Duvvuri Subbarao said that “perhaps” there was a need to reduce the reserves that banks have to set aside via the cash reserve or the statutory liquidity ratios.
While the Sensex ended nearly 300 points higher at19229, the Nifty ended up 1.55 percent or 85 points higher at 5699.
Even the rupee pulled back to trade at 61 against the USD after the governmentincreased import duty on gold, silver and platinum to 10 percent with a view to arrest the declining value of rupee and contain the fiscal deficit to 3.7 percent of the GDP.
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“The revenue implications of these changes are estimated at Rs 4830 crore for the remaining part of the financial year at current levels of import”, the Ministry said.
“Today’s rally was partly due to some bottom-fishing and optimism on the rupee after Government announced measures to control the CAD… With the result season nearing an end, the market would now be reacting to the movement in the rupee, global developments (related to stimulus withdrawal in the US, Fed comments etc) and reforms from the government. However, crude prices continue to trade at elevated levels, which is a concern,” said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.
The foreign institutional investors bought shares worth Rs 408.36 crore while domestic institutional investors were net buyers worth Rs 258.81 crore on Monday as per the provisional data from the National Stock Exchange.
Stocks in news
DLF closed nearly 8 percent higher on higher than expected revenues and fall in debt during the April-June quarter.
Wockhardt ended 5 percent higher after Business Standard reported that it is likely to get US FDA relief for its Waluj facility.
Muthoot Finance ended 4 percent higher after itfiled draft prospectus with SEBI for public issuance of secured NCD of up to 300 crore.