Sensex Ends Over 700 Points Off Day’s High After MPC Decision; Nifty Closes Below 11,200
An investor looks at a stock quote screen near the end of the trading day in a brokerage in Shanghai, China. (Photographer: Kevin Lee/Bloomberg News)

Sensex Ends Over 700 Points Off Day’s High After MPC Decision; Nifty Closes Below 11,200

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Closing Bell: Sensex Ends Over 700 Points Off Day’s High After MPC Decision; Nifty Closes Below 11,200

Indian equity benchmarks extended declines for the fifth consecutive trading session after RBI’s 25 basis-point cut in the policy rate. The benchmark indices registered their longest losing streak since July 25.

The S&P BSE Sensex closed 1.14 percent or 434 points lower at 37,673 after gaining 297 points intraday. The NSE Nifty 50 ended 1.23 percent lower to close at 11,174.75. The broader markets represented by the NSE Nifty 500 Index fell 1.16 percent.

The market breadth was tilted in favour of sellers. About 1,121 stocks declined and 657 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Bank Index’s 2.4 percent decline. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.4 percent.

Sensex Ends Over 700 Points Off Day’s High After MPC Decision; Nifty Closes Below 11,200

The 25 basis-point cut in the policy rate by the country’s central bank will have little impact as stocks had priced in the quantum of reduction, Bloomberg reported quoting Dharmesh Kant, head of retail research.

However, RBI lowering its growth forecast for the current fiscal is a key negative, Kant told Bloomberg.

India’s monetary policy committee on Friday cut interest rates for the fifth time this year to support growth in the economy. Rates have now been cut by 135 basis points since the start of the year.

The monetary policy stance has been maintained at ‘accommodative’, suggesting the next move in rates will either be another cut or a status quo.

Read to get up to speed:

  • ‘RBI would not allow a cooperative bank to collapse’ – Governor Shaktikanta Das on PMC Bank crisis.
  • RBI eases norms for microfinance lenders, hikes loan limit to Rs 1.25 lakh.
  • Not aware of government demand for interim dividend, Shaktikanta Das says.
  • RBI top team faces fire on financial stability risks.
  • Here’s what brokerages made of RBI’s repo rate cut

Global Markets Update: U.S. Stock Futures Decline

U.S. equity futures drifted lower and European stocks pared a gain as investors awaited jobs numbers for clues on whether the Federal Reserve will cut rates this month to bolster the world’s largest economy.

  • Futures on the S&P 500 Index fell 0.2 percent.
  • The Stoxx Europe 600 Index increased 0.1 percent.
  • The MSCI Asia Pacific Index climbed 0.1 percent.
  • The MSCI Emerging Market Index gained 0.2 percent.

Get your daily fix of global markets here.
Source: Bloomberg

Bond Market Update: 10-Year Yield Gains Five Basis Points

The yield on the 10-year note rose as much as five basis points to 6.66 percent.

The 10-year yield is expected to fall further going forward as RBI’s policy is bullish for bonds, Bloomberg reported quoting Vijay Sharma, executive vice president for fixed-income at PNB Gilts.

“As disappointment wanes, traders will come back to the markets and yields will go down with the new 10-year bond starts trading,” Sharma told Bloomberg.

Fab Four Stocks Of The Day

Spandana Sphoorthy

  • Stock rose as much as 5.2 percent to Rs 939.85.
  • Axis Capital initiated coverage with ‘Buy’ rating and a price target of Rs 1,200.

UCO Bank

  • Stock rose as much as 13.9 percent to Rs 13.10.
  • Board approved proposal to issue equity shares worth Rs 2130 crore to government of India.

National Fertilizers

  • Stock rose as much as 6 percent to Rs 25.50.
  • Fertilisers sale for April-September (kharif season) up 25 percent on a yearly basis to 27 lakh MT.

Alembic Pharma

  • Stock rose as much as 7.1 percent to Rs 563.
  • JV (Aleor Dermaceutical) received U.S. FDA nod for ANDA spray to for treatment of skin diseases

Money Market Update: Rupee Struggles To Recover

The Indian rupee struggled to recover against the U.S. dollar.

The home currency depreciated 0.05 percent to 70.93 against the greenback.

Sensex, Nifty Set To Extend Declines For Fifth Day

Indian equity benchmarks extended declines for the fifth consecutive trading session after RBI’s 25 basis-point cut.

The S&P BSE Sensex fell 0.79 percent or 300 points to 37,794 as of 3 p.m. and the NSE Nifty 50 fell 0.94 percent to 11,207. The broader markets represented by the NSE Nifty 500 fell 0.87 percent.

India’s monetary policy committee on Friday cut interest rates for the fifth time this year to support growth in the economy.

  • The committee decided to pare the benchmark repo rate by 25 basis points to 5.15 percent.
  • Rates have now been cut by 135 basis points since the start of the year.
  • The monetary policy stance has been maintained at ‘accommodative’, suggesting the next move in rates will either be another cut or a status quo.

Other Highlights:

  • ‘RBI would not allow a cooperative bank to collapse’ – Governor Shaktikanta Das on PMC Bank crisis.
  • RBI eases norms for microfinance lenders, hikes loan limit to Rs 1.25 lakh.
  • Not aware of government demand for interim dividend, Shaktikanta Das says.
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