Indian
stock markets and the rupee fell sharply after the Reserve Bank of
India held the key rates unchanged in the mid-quarter monetary policy
review. The Sensex plunged over 350 points from the day's high post
the policy announcement.
The sharp fall came because markets were factoring a cut in both the repo rate and the cash reserve ratio after India's GDP growth slowed down to the lowest pact in nine years.
The sharp fall came because markets were factoring a cut in both the repo rate and the cash reserve ratio after India's GDP growth slowed down to the lowest pact in nine years.
Three
banking stocks - HDFC Bank, ICICI Bank, and State Bank of India - led
to nearly 100 index point loss on the Sensex.
Gold
prices could move to $1640 per ounce but in the near term support is
seen at $1580, 1560 while resistance is seen at 1641 and 1630,
according to Barclays Research. With silver struggling to gain
bullish traction, gold/silver ratio may extend toward 57.50, Barclays
added.
