Mumbai, July 11 (): Stock markets, rupee and gold shot up on news that US Federal Reserve would not raise interest rates and the economic stimulus would continue. Chairman Ben Bernanke spoke about a highly accommodative policy and said that though unemployment has come down to 6.5% the policy an automatic increase would not take place.
Ben indicated that the Quantitative Easing would not be wound up in a hurry even though the US economy is on the growth path. This led to a boost in major Asian markets, excluding Nikkei of Japan.
This new found optimism was seen on the Indian stock markets with the BSE Sensex up by 1.79 per cent at 19,639.01 and the NSE Nifty up by 1.87 per cent at 5,925.35. Though the stocks and gold prices gained and rupee strengthened, auto major Mahindra &Mahindra decide to close the factory for eight days every month to bring the production in line with the demand.
The three percent gainers were Hindalco up by 3.21% followed by engineering giant Larsen &Toubro that went up by 3.09 per cent.
There were eight stocks apart from other in 2 per cent plus gainers –SBI, Tata Power, TCS, Bharti Airtel, HDFC, Coal India, ICICI bank and Sterlite Ind. In the one percent gainer list was M&M and HUL.
With the car and other vehicle market being sluggish the auto major found that it was holding stocks more than the bookings it had. In view of this the company said that in the second half of July there would be a production holiday to bring the sales and production in alignment.
The chakan plant would be joining M&M units to stop production of 8 days and this would not affect the availability of its products as this move was done after studying the demand and supply. Tata Motors had put in such a practice to prevent it from holding excess inventory.