Mumbai, Jun 8 (PTI) Equity benchmarks Sensex and Nifty closed with losses on Thursday, snapping their four-day winning streak as investors reduced exposure to auto, bank and IT stocks as RBI cut its key interest rates. The rate was kept unchanged.
After staying in the positive zone for most of the session, the 30-share BSE Sensex closed 294.32 points, or 0.47 per cent, lower at 62,848.64. It fell 353.23 points, or 0.55 per cent, to 62,789.73 during the day.
The NSE Nifty closed at 18,634.55, down 91.85 points or 0.49 per cent.
“Investor sentiment turned subdued after the in-line monetary policy announcement by RBI, as there were high expectations in the market for a more optimistic revision in inflation outlook, taking into account the recent easing in inflation data.
Vinod Nair, head of research, Geojit Financial Services, said, “RBI’s decision to reduce the inflation rate by only 10 bps signals a cautious stance due to geo-political uncertainties, possible impact of El Nino and increase in minimum support price.”
Kotak Mahindra Bank was the biggest loser in the Sensex pack, shedding 2.68 per cent, followed by Tech Mahindra, Mahindra & Mahindra, Axis Bank, Hindustan Unilever, Tata Motors, Tata Consultancy Services, Bajaj Finserv, Bajaj Finance, Nestle and Titan.
In contrast, NTPC, Power Grid, Larsen & Toubro, HDFC, Reliance and HDFC Bank were among the gainers.
In the broader market, the BSE Midcap gauge fell 0.87 per cent and the Smallcap index fell 0.47 per cent.
“Indian equities witnessed profit booking on RBI policy meet result day, which was on expected lines… following RBI policy outcome; Markets saw some profit-booking in interest rate-sensitive sectors, which dragged the indices lower… Barring metals, all sectors ended in the red,” said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services.
Among the indices, realty declined 1.51 per cent, telecom (1.06 per cent), auto (0.97 per cent), IT (0.88 per cent), FMCG (0.81 per cent), Bankex (0.80 per cent), consumer discretionary (0.76 per cent). per cent) and commodities (0.66 per cent).
Industries, utilities, capital goods and power were among the gainers.
“Global markets were mixed on Thursday as negative sentiments emanating from expectations of further interest rate hikes by major central banks and the fact that the eurozone entered recession after a 0.1 per cent contraction in January-March GDP. entered, was offset by optimism over more Chinese stimulus measures. said Deepak Jasani, head of retail research at HDFC Securities.
In Asian markets, Seoul and Tokyo ended with losses, while Shanghai and Hong Kong closed in the green.
Equity markets in Europe were trading mostly in the positive zone. US markets mostly closed with losses on Wednesday.
The Reserve Bank of India left its key interest rate unchanged for the second straight policy meeting on Thursday but indicated it wanted to see inflation more moderate while maintaining the growth momentum.
The Monetary Policy Committee (MPC), consisting of three members from the RBI and an equal number of outside experts, voted unanimously to keep the benchmark repurchase, or repo rate unchanged at 6.50 per cent.
While consumer price inflation eased during March-April 2023 and moved into the tolerance band, headline inflation is still above the target of 4 per cent and is expected to remain so during the rest of the current fiscal, RBI Governor Shaktikanta Das Announcing the monetary policy decision.
The central bank cut its inflation forecast for the current fiscal to 5.1 per cent as Governor Shaktikanta Das said the central bank’s monetary policy actions were yielding the desired results.
It retained the GDP growth rate for the current fiscal at 6.5 per cent on the back of supportive domestic demand conditions.
Dhiraj Relli, MD & CEO, HDFC Securities, said, “The RBI MPC left repo rates unchanged in its meeting on June 8, in line with street expectations. Against the backdrop of higher-than-expected GDP numbers and moderate headline and core inflation prints, the MPC The members were in good place.
Global oil benchmark Brent crude fell 0.31 per cent to $76.71 per barrel.
Foreign institutional investors (FIIs) bought equities worth Rs 1,382.57 crore on Wednesday, according to exchange data.
“A sharp correction in last-hour trade dragged Sensex below 63,000-mark as realty stocks fell sharply after recent rally. While the rate hike by the MPC was on expected lines, the RBI’s commentary on inflation for this financial year dampened sentiment,” said Shrikant Chauhan, head of equity research (retail), Kotak Securities Ltd.
This report is automatically generated from the PTI news service. ThePrint is not responsible for its content.