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BCN-21
INDIA-MARKET
Sensex, Nifty turn volatile after RBI policy outcome
Mumbai, Apr 4, 2019 (BSS/PTI) – Domestic benchmark equity indices turned
volatile in afternoon trade Thursday after the RBI cut repo by 0.25 per cent
for the second time in a row, but kept the policy stance at ‘neutral’ amid
uncertainty over monsoon.
The 30-share index fell 160.45 points to 38,716.67 in a knee-jerk reaction
at noon, but pared all losses, and was trading 22.24 points, or 0.06 per
cent, higher at 38,899.36 at 1230 hours.
Similarly, the NSE benchmark Nifty was trading marginally higher at
11,643.40.
Top gainers in the Sensex pack were Hero MotoCorp, Bharti Airtel, Asian
Paints, NTPC, Tata Motors, HDFC, Bajaj Auto, Vedanta and Axis Bank, rising up
to 1.92 per cent.
While HCL Tech, Yes Bank, Tata Steel, RIL, ONGC, IndusInd Bank, TCS, ICICI
Bank, M&M, Infosys, HDFC Bank, ITC and SBI, shedding up to 2.43 per cent.
Interest rate sensitive stocks – banking, realty and auto – witnessed mixed
trend following the RBI’s rate-cut announcement.
The BSE auto index was trading at 19,241.02, up 77.92 points or 0.41 per
cent, and the BSE realty index gained 0.81 per cent at 2,123.97. The BSE
bankex, on the other hand, was hovering around 33,735.77, down 112.23 points
or 0.33 per cent.
In an attempt to propel the economy ahead of the general elections, the
Reserve Bank of India (RBI) Thursday lowered the benchmark interest rate by
0.25 per cent, the second cut in a row, to the lowest level in one year on
softening inflation.
The central bank, however, kept monetary policy stance ‘neutral’ amid
uncertainty over monsoon.
It also lowered GDP growth forecast for the 2018-19 to 7.2 per cent from
7.4 per cent predicted in February policy.
Market sentiment was also subdued after foreign investors turned net
sellers in the previous trading session, traders said.
Foreign institutional investors (FIIs) pulled out Rs 1,040.48 crore
Wednesday, and domestic institutional investors (DIIs) sold equities to the
tune of Rs 80.83 crore, provisional data available with stock exchanges
showed.
BSS/PTI/HR/1330