Market extends losing streak for third consecutive session
At close, Sensex was down 502.25 points or 0.62% at 80,182.20, and the Nifty was down 137.15 points or 0.56% at 24,198.85.
The Sensex and Nifty jumped as Reserve Bank of India (RBI) kept the repo rate unchanged at 5.15 per cent on Thursday. Monetary Policy Committee (MPC) also said that the policy space for future action is “available” indicating a rate cut in the near term.
In addition to this, the MPC also pegged country’s GDP growth at 6 per cent.
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At 1319 hours, the 30-share BSE index was trading 221.06 points higher at 41,363.72, and the broader NSE advanced 51.85 points to 12,135.35.
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In the previous session, Sensex ended 0.87 per cent or 353.28 points higher at 41,142.66. While, Nifty rose 109.50 points, or 0.91 per cent, to settle at 12,089.15.
Private Banks edged up slightly after the announcement. RBL Bank, IndusInd Bank, Bank of Baroda, SBI and Axis Bank gained over 2 to 5 per cent on the NSE. The Nifty PSU Bank index gained over 2.5 per cent led by Canara Bank.
“It was an expected move by the RBI, maintaining the repo rate unchanged at 5.15 per cent. With the inflation rate breaching the upper band, it will take time for the central bank to revive the rate cuts. By maintaining the accommodative stance, there is scope for rate cuts once the inflation rate falls back to a comfortable level,” Deepthi Mary Mathew of Geojit Financial Services was quoted as saying.
(With input from agencies)
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