Steady Buying by bulls help Nifty trade up 41.65 points - Eastern Financiers

Steady buying by bulls helped markets reverse their early losses, shrugging off RBI's neutral stance on key policy rates, to end near the day's high. Nifty ended trade at 5850.05, up 41.65 points or 0.72 percent and Sensex shut shop at 19325.87, up 147.94 points or 0.77 percent.

In the mid-quarter review of the monetary policy, 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).

India's trade deficit widened to seven month high of $20.1 billion in May as gold imports continue to surge while exports declined by 1.1%, raising concerns about economic recovery. The deficit widened to $20.1 billion from $17.8 billion in April. The gap was $16.9 billion in May last year.

Source : Equity Bulls

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