Indian market ends higher on Wednesday but IT stocks decline
The MPC said that it decided to keep the policy rate unchanged with a neutral stance and remain watchful of incoming data.
Five members were in favour of the monetary policy decision, while Dr. Ravindra H. Dholakia was not in favour.
The MPC kept the repo rate unchanged at 6.25 percent but cut statutory liquidity ratio by 50 basis points to 20 percent.
The repo rate is the rate at which the RBI lends to its clients generally against government securities. Reduction in repo rate helps the commercial banks to get money at a cheaper rate.
Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that commercial banks in India are required to maintain in the form of gold, government approved securities before providing credit to the customers.
The bank stocks closed Wednesday on relatively higher note.
Some of the key stocks that gained on Wednesday were Reliance, ICICI Bank, Aurobindo Pharma, M&M, Sun Pharma and HUL while TCS, Tech Mahindra, Wipro, Infosys, BHEL and Tata Motors declined.
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