Market Outlook for the day – The current chart patterns indicate positive bias for the near term.
Venus Remedies rose 3.42% on NSE after its novel antibiotic product received European patent.
Eicher Motors jumped 5.82% on NSE after the company reported 86% rise in total motorcycle sales to 25,011 units in May 2014 over May 2013.
Aurobindo Pharma Ltd has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Divalproex Sodium Extended-release tablets. The product is ready for launch. The product has a market size of approximately $690 million for the 12 months ended March, 2014.
The Reserve Bank of India kept its main lending rate viz. the repo rate unchanged at 8% and also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL) after a monetary policy review today, 3 June 2014. The central bank announced reduction in the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points to 22.5% of their NDTL from 23% with effect from the fortnight beginning 14 June 2014.The RBI has reduced the liquidity provided under the export credit refinance (ECR) facility from 50% of eligible export credit outstanding to 32% with immediate effect.
Markets edged higher and ended the session at record closing highs after the RBI announced 50bps cut in SLR which is likely to induce more liquidity as the banks will now get more freedom to expand credit to the non-government sector. The market sentiment was also boosted by the RBI's statement after the monetary policy review to allow foreign portfolio investors to participate in the domestic exchange traded currency derivatives market to the extent of their underlying exposures plus an additional $10 million. On the sectoral front, BSE Metal, Realty, Capital Goods, Oil & Gas and Consumer Durables all have ended the session in green on the flip side FMCG and Healthcare ended in red. The BSE Mid-Cap index was up 54.54 points or 0.63% and the BSE Small-Cap index was up 108.95 points or 1.18%.