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 at 4%.
In the mid-quarter review of the monetary policy held today, the Reserve Bank of India kept key policy rates and the Cash Reserve Ratio 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.
The guidance given by the central banks was that the monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead.
Chandrajit Banerjee, Director General, CII: "The decision of the RBI to hold policy rates on status quo is disappointing.
"At a time when both growth and inflation dynamics call for an accommodative monetary policy, the RBI has taken a cautious approach of attending to the prospect of a possible resurgence in inflation over reviving growth in the economy", he added.
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, official data showed today.
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
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