MUMBAI: Dovish RBI statement despite a status quo on interest rates led to a recovery on Dalal Street on Tuesday morning as the sensex gained over 100 points from its low soon after the policy announcement from Mint Street.
At 11.20am, sensex was at 28,092, down nearly 100 points from Monday's close but up from its low of 27,963 touched before the RBI announcement at 11am.
Although the RBI kept repo and reverse repo rates unchanged, it said that persistently low oil prices globally and government's proactive measures to rein in inflationary pressures were working well to control price rise.
Analysts and economists interpreted this as an indication for the central bank to cut rates soon if inflation stays within its projected range of 6% by January 2016. However, RBI said US Fed rate policy and monsoon in Indian were risks to inflation shooting up again.
Among the top sensex gainers were Hero MotoCorp, Coal India and Hindalco while among the top laggards were GAIL and ONGC.
