Indian Markets reversed early losses to close higher - LuvKush Finserve

Markets reversed early losses shrugging off RBI's neutral stance on key policy rates to end near the day's high led by gains in index heavyweights and Mahindra & Mahindra. The Sensex after touching a high of 19,344, ended finally at 19,326 - up 148 points. Nifty ended up 42 points at 5,850.

Earlier in the day, the Sensex slipped to a low of 19,085 after the Reserve Bank of India kept repo rate unchanged at 7.25% and cash reserve ratio (CRR) at 4%. 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. 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.

BSE auto index surged 2% at 10,901. Capital goods, healthcare and oil & gas indices were up 0.5-1% each. On the other hand, weakness was noticeable in metal shares as the BSE metal index dipped 0.13% at 7,930.

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.

Source : Equity Bulls

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