Reserve Bank of India announces their new policy today for controlling the inflation in the country.
RBI upped the repo--the rate at which it lends to banks -- and reverse repo--the rate at which it borrows from banks--rates by 25 bps each to 6.5% & 5.5%, respectively.
CRR rate remains unchanged.
Inflation is likely to be a global concern in 2011 and emerging markets are facing significant inflationary pressures, says RBI Governor D Subbarao.
The effect of RBI policy influenced market in a negative way as all of us expected.
SENSEX closed 181 points in RED.
NIFTY closed below 5700.
Banking sector faced large selling pressure. Almost all Banking shares closed in RED.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "
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