Benchmark share indices ended higher on Wednesday with bank shares leading the gains after the Reserve Bank of India exempted the mandatory reserve requirements on funds raised through bonds for extending credit to housing and infrastructure sectors.
The S&P BSE Sensex ended at 25,549.72 up by 321 points or 1.27% and the CNX Nifty ended 7624.40 up by 97.75 points or 1.30%.
To boost demand for infrastructure and housing, the RBI on Tuesday said banks would not have to maintain cash reserve ratio (CRR) or statutory liquidity ratio (SLR) and will not have to meet priority-sector lending targets for funds raised through bonds for extending credit to these sectors.
June trade deficit hit an 11-month high according to government data showed on Wednesday. India’s exports in June rose 10.22% from a year earlier, helped by a pick-up in external demand and a weak currency.
The local unit opened at 60.24 a dollar and fell to 60.27. However, the home currency ended unchanged from its previous close of 60.14.
Posted by Ritika Securities
