The Index will increase after SLR is reduced to stimulate RBI liquidity

Mumbai, June 7: Recovery from the flat trading session, Indian equity markets temporarily closed in green, encouraging the Reserve Bank of India's decision to increase the liquidity level in the commercial banking system. The RBI in its second bi-monthly monetary policy review of 2017-18 decided to reduce the Statutory Liquidity Ratio (SLR) in order to induce liquidity into the banking system. However, the RBI kept its key lending rate unchanged at 6.25 per cent.

Furthermore, better forecast for monsoon, banking, automobile and healthcare sectors has increased healthy buying and market sentiments better than expected by the Indian Meteorological Department (IMD). The Nifty of the National Stock Exchange (NSE) provisionally closed at 3.30 p.m. at 9,663.90 points -- up 26.75 points or 0.28 per cent.

The BSE 30 Sensex Sensex, which opened at 31,252.71 points, closed at 31,282.43 points. It ended with a gain of 91.87 points or 0.29 percent. It was the highest ever at 31,346.99 and 31,172.98 points during intra-day trading. BSE market value is widespread - 1,465 advances and 1,170 declines.