Reserve Bank of India announced the Annual Policy for 2007-08 aiming at controlling the inflation. While retaining the repo, reverse repo and interest rate untouched, RBI could remove the apprehension that the interest rate would move up further. India Inc. welcomed this move wholehartedly, but received a set back consequent to the inaction to prevent the Rupee appreciating further. The policy was aimed at making the exports unattractive. The tech stocks responded immediately. Infosys, Wipro, Satyam and TCS suffered consderable set back. At the same time automobile sector became buoyant as revealed by the movement of Tata Motors, Maruti Udyog, Bajaj etc. The SENSEX improved by 81.05 points and Nifty 25.50 points. However the relaxation extended in the case of forward booking may help the exporters to some extent. If the rupee appreciation continues at the current rate, the tech srips would be the worst affected. In that case the techies may not present a pleasant picture. The current situation calls for a cautious investment decision as far as tech scrips are concerned.
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