Home Market Sensex shrugs off RBI policy action, down 192 pts

Sensex shrugs off RBI policy action, down 192 pts


NEW DELHI: Stock barometer Sensex came down by nearly 200 points on Thursday after the RBI led by Governor Shaktikanta Das decided to lower GDP growth outlook for 2019-20.

In its first bi-monthly policy review of this financial year, the six-member monetary policy committee (MPC) slashed the repo rate by 25 basis points, which was along the expected lines. What caught investors off-guard, however, was the downward revision in GDP growth to 7.2 per cent from the earlier 7.4 per cent.

Concerns over a likely poor monsoon swirled, along with a sharp depreciation in the rupee against the dollar. The domestic currency tanked as much as 71 paise.

According to a Reuters poll, the rupee might take a further blow if the central bank continues with policy easing.

While India grappled with the developments on the home front, the global markets did not paint a rosy picture either. Dire data from Germany and fresh concerns about US-China trade talks weighed on European and Asian markets.

Tech charts signal that markets are in an overbought zone and investors are booking profits at even the slightest sign of trouble.

BSE's Sensex ended lower by 192 points, or 0.49 per cent, at 38,685 while NSE Nifty settled at 11,598, down 50 points, or 0.39 per cent.

The advance-decline ratio on the BSE stood at around 2:3.

Let's check out today's market bulletin.

Losses in RIL, technology and bank shares cast a shadow on benchmark indices. Out of Sensex's 30 shares, 13 advanced and 17 declined. Tata Motors with a rise of 2.49 per cent was the best-performing stock.

Meanwhile, TCS with a fall of 3.17 per cent declined the most.

HCL Tech, YES Bank, IndusInd Bank, RIL and Kotak Mahindra Bank were among other stocks that declined the most.

Mid and smallcap indices settled in the red, too. However, they fared better than the benchmark Sensex. The midcap index slipped 0.14 per cent and the smallcap index 0.32 per cent.

IT, energy, technology and oil & gas were the worst performing sectors on the BSE, shedding over 1 per cent each. Healthcare and auto posted highest gains.

Turning to factors…

Downward GDP revision
The Reserve Bank of India revised the GDP growth downward to 7.2 per cent, saying there are signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods.

Global markets dive
European and Asian shares stepped back froRead More – Source