Markets ended lower on
Friday after the Reserve Bank of India (RBI) sprung a surprise and kept the
repo rate unchanged at 6.50 per cent. Most experts had expected the central
bank to hike rates by 25 bps. The S&P BSE Sensex lost 792 points, or
2.25 per cent, to settle at 34,377 while the broader NSE's Nifty50 index
dropped 283 points, or 2.7 per cent, to close at 10,316. Among specific
stocks, shares of oil marketing companies such as HPCL, BPCL and IOCL hit 52-week
lows after the government announced that it will cut excise duties on petrol
and diesel prices and OMCs will absorb Re 1 per litre.Heavy losses were also
visible in banking stocks with the Nifty Bank index slipping 1.5 per cent. YES
Bank, State Bank of India (SBI), Bank of Baroda (BoB), IDFC Bank and ICICI Bank
lost up to 5.1 per cent.
RBI policy
Earlier, the monetary policy committee (MPC) of the Reserve Bank on Friday kept the repo rate unchanged at 6.50 per cent in its fourth bi-monthly monetary policy review of 2018-19. The central bank changed the policy stance to 'Calibrated tightening' from 'Neutral'. Calibrated tightening means rate will be maintained or hiked in this cycle.
Rate
sensitive stocks took deep cuts despite RBI's status quo. The Nifty PSU Bank
index dropped 4.4 per cent to settle at 2,656 levels, while Nifty Auto index
tumbled nearly 3.2 per cent. Nifty Realty, too, slipped 3 per cent. Volatility
benchmark, India VIX, advanced 7 per cent.
Shares
of rate sensitive sectors like bank, automobiles and realty stocks were trading
weak despite the monetary policy committee (MPC) of the Reserve Bank on Friday
kept the repo rate unchanged at to 6.50% in its fourth bi-monthly monetary
policy review of 2018-19.At 02:49 pm, Nifty PSU Bank, Nifty Auto and Nifty Realty indices
were down in the range of 1.6% to 2.5%, as compared to 1.5% decline in the
Nifty 50 index. Nifty Bank and Nifty Private Bank index were trading flat on
the National Stock Exchange (NSE).
TOP GAINERS:INFY,TCS,TITAN
MAJORLOOSERS: BPCL,IOC,ONGC
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