The Reserve Bank of India (RBI) took the half way route today by keeling key policy rates unchanged but cut the cash reserve ratio (CRR) by 50 basis points to 5.5%. The RBI has kept policy rates unchanged. It has cut the growth forecast for FY12 to 7% as against earlier projections of 7.6% while kept inflation forecast for March-end at 7%.
Rate sensitives gained strength post this policy announcement. Shares of country’s largest lenders ICICI Bank and SBI gained 2.3-2.7% while HDFC Bank rose 0.7% and HDFC was up 1.3%.
Capital goods major Larsen and Toubro jumped 3%. Index heavyweight Reliance Industries moved up 1.6%.
Among other largecaps, Infosys, ITC, ONGC, Tata Motors, Bharti and Wipro were up over 0.5%.