Sensex, Nifty Extend Decline For Fourth Day Ahead Of RBI Policy
A Broker looks a graph depicting the change in sterling on the trading floor. (Photographer: Jason Alden/Bloomberg)

Sensex, Nifty Extend Decline For Fourth Day Ahead Of RBI Policy

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Closing Bell: Sensex, Nifty Extend Decline For Fourth Day Ahead Of RBI Policy

Indian equity benchmarks extended declines for the fourth consecutive trading session ahead of the country’s central bank’s bi-monthly policy.

The S&P BSE Sensex fell 0.52 percent to end at 38,106.87 and the NSE Nifty 50 declined 0.4 percent to close at 11,314. The broader markets represented by the NSE Nifty 500 Index fell 0.41 percent.

The RBI is expected to cut its benchmark repurchase rate by 25 basis points Friday, according to a Bloomberg survey of economists, which will take the repo rate to a near-decade low of 5.15 percent. Few economists also see the possibility of a larger cut in rates of up to 40 basis points. So far this year, the MPC has cut rates by 110 basis points.

The market breadth was tilted in favour of sellers. About 1,081 stocks declined and 709 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 3 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 2.45 percent.

Sensex, Nifty Extend Decline For Fourth Day Ahead Of RBI Policy

Large Trade Alert: State Bank Of India

About 15.1 lakh shares of State Bank of India changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Hexaware Technologies Signs Pact With Ephesoft

Shares of Hexaware Technologies fell 1.95 percent to Rs 368.90 as of 3:07 p.m. The stock declined 2.46 percent intraday.

The company entered into an agreement with Ephesoft for cloud-based intelligent content capture, according to its stock exchange filing.

The stock declined 15 percent in the past 12 months compared to a 6 percent advance in the Sensex.

Bond Market Update: 10-Year Yield Falls Six Basis Points

The yield on the 10-year note fell as much six basis points to 6.6 percent.

The bonds advanced for a third day amid expectations the central bank may cut interest rates in its monetary-policy meeting on Friday.

A decline in U.S. Treasury yields may also support sentiment. The RBI will cut its benchmark repurchase rate by basis points Friday, according to a Bloomberg survey of economists and which will take the repo rate to a near decade low of 5.15 percent.

The yield on 2033 bonds dropped nine basis points on Tuesday, while that on benchmark 10-year debt declined by four basis points to 6.66 percent as the government decided to keep its second-half borrowing program unchanged.

Money Market Update: Rupee At Day’s High

The Indian rupee, which reversed opening losses at noon, traded at day’s high against the U.S. dollar.

The home currency appreciated as much as 0.2 percent to 70.94 against the greenback.

Fab Four Stocks Of The Day

Apollo Pipes

  • Stock rose as much as 19.9 percent to Rs 472.
  • Second quarter sales volume rose 11 percent to 10,306 mtpa, driven by a steady contribution from the cPVC HDPE pipe and value-added product segment of fittings.

Religare Enterprises

  • Stock hit 5 percent upper circuit at Rs 40.10.
  • Entered into a consent agreement with Axis Bank where it will pay Rs 170 crore to the Bank in a phased manner. Both parties have agreed to settle the matter amicably.

GMR Infra

  • Stock rose as much as 3.9 percent to Rs 17.
  • CCI approved acquisition of shares of GMR Airports by the entities of Tata Group, GIC and SSG Capital, subject to compliance of certain modifications.

CG Power

  • Stock hit 5 percent upper circuit at Rs 14.10.
  • SAT rejects appeals filed by Gautam Thapar, Avantha Holdings and former officials of the company against an order by SEBI that barred them from accessing the capital markets.
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