A trader reacts while working in a brokerage house in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)

Sensex, Nifty End At Over 1-Month Low After RBI Status Quo

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Closing Bell

Indian equity benchmarks fell to their lowest level in over a month led by losses in banking shares after the Reserve Bank of India kept key rates unchanged and maintained its neutral policy stance.

The S&P BSE Sensex fell 0.63 percent or 205 points to 32,597 and the NSE Nifty 50 Index declined 0.73 percent or 74 points to 10,044.

The losses in today's session were broad based as the S&P BSE MidCap Index fell 0.9 percent and the S&P BSE SmallCap Index declined 0.66 percent.

Barring the Nifty IT Index, all sector gauges compiled by the National Stock Exchange ended lower led by the Nifty PSU Bank Index's 2.1 percent fall.

Sensex, Nifty End At Over 1-Month Low After RBI Status Quo
Sensex, Nifty End At Over 1-Month Low After RBI Status Quo

RBI Deputy Governor Viral Acharya Says

  • Liquidity situation normalising
  • Banking system liquidity moving to neutrality
  • Liquidity should still be in surplus at the end of FY2018
  • Neutrality should be achieved by first half of FY19: RBI estimates
  • To consider OMOs in case needed

Rate Sensitive Shares Extend Losses

Rate sensitive banking, finance and auto shares extended losses after the Reserve Bank of India kept key rates unchanged and maintained its neutral stance.

  • NSE Nifty Bank Index fall 0.8 percent
  • S&P BSE Auto Index declines 0.6 percent
  • S&P BSE Finance Index falls 1 percent
Sensex, Nifty End At Over 1-Month Low After RBI Status Quo

RBI Governor Urjit Patel On RBI Monetary Policy

  • Neutral stance is for a reason that all possibilities are on the table
  • ‘Very small’ change in inflation projection for October-March
  • To look at growth, inflation data in coming months
  • Wholesale deposit rate was very low
  • Rise in some bulk deposit rates a qualitative assessment
  • MPC reiterated commitment to meet inflation target of 4 percent
  • MPC considered upside pressure of food, living costs
  • MPC votes to leave repo rate unchanged at 6 percent by 5-1