1. As suggested by me RBI has gone ahead with the CRR hike by 25 bps to 8.25% and has left Repo and Reverse Repo rates unchanged and is aiming at 4-4.5% inflation going forward.
2. It will suck out 35000 Crores from the market. Market has given thumbs up to the credit policy and that is the reason that the market is trading at day's high. It is envisaged that CRR hike by the RBI will not impact the banking sector significantly.
3. Government has extended exemption to software technology parks to March 2010.
CRR Policy update and effect on Indian Stock Market
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