INDIAN BENCHMARKS ended at a day’s high on RBI measures for infra bonds ...Nifty re-conquers 7600.

INDIAN EQUITY BENCHMARKS ended at a day’s high extending the rally for second consecutive trading session after the Reserve Bank of India relaxed financing norms for infrastructure development and affordable housing. RBI exempted long-term bonds from mandatory regulatory norms like CRR and SLR if the money raised is used for funding of infrastructure and affordable housing projects.

·         Further, Tata Communications plans to invest US$200mn over a period of three years to double its data centre capacity in India.

·         Federal Bank net profit in April-June more than doubled to Rs. 220 crore from Rs. 106 crore in the corresponding period last year on account of lower provisions for bad loans.

The crucial resistance for Nifty is now seen at 7640 and above this 7665. Support for the immediate term is now placed at 7530 and next support will be 7460.