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Sensex ends lower, Nifty below 10,500 as RBI keeps repo rate unchanged

All that happened in the markets today

SI Reporter  |  New Delhi 

Photo: Shutterstock.com
Photo: Shutterstock.com

Motilal Oswal, Chairman & MD, MOFSL on RBI Monetary policy   RBI has two challenges to tackle with, one is the transmission of lower interest rates in the economy through banking system so that growth can be incubated at this juncture and second is to protect economy from global interest rates tightening started by USA.   The second challenge is more difficult than the first one as transmission of lower rates can happen with the improvement of asset quality of the banking system. The international challenge is more dynamic and needs monitoring.   Markets were expecting no change in the policy stance and will be considered non event, in the commentary RBI said, they wants to protect the early signs of recovery and keep economy conducive for the growth. This is a positive stance and goes well with broad market sentiments. We think these dips should be used to further build the position in the equity as the "earnings revival" is around the corner. Nifty Bank 0.5% post RBI policy Sectoral Trend Sensex losers and gainers Markets at Close   Benchmark indices were trading flat after Reserve Bank kept the key policy rate unchanged at 6% for the third consecutive time on Wednesday in view of firming inflation. Reverse Repo rate was also maintained at 5.75%   The S&P BSE Sensex ended at 34,082, down 113 points while the broader Nifty50 index settled at 10,476, down 21 points. Rate sensitive shares trade mixed as RBI keeps repo rate unchanged at 6%   Shares of rate sensitive sectors such as banks, automobiles and real estate were trading mixed after the Monetary Policy Committee (MPC), headed by Reserve Bank of India (RBI) Governor Urjit Patel, maintained status quo on interest rates.   The RBI keeps repo rate unchanged at 6% and reverse repo rate at 5.75%. Repo rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. CLICK HERE FOR FULL STORY

Benchmark indices ended lower on Wednesday after Reserve Bank of India kept the key policy rate unchanged at 6 per cent for the third consecutive time in view of firming inflation. Reverse Repo rate was also maintained at 5.75%.

The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel had last reduced the benchmark lending rate by 0.25 percentage points to 6 per cent last August, bringing it to a 6-year low.

In its December review, the MPC had kept the benchmark interest rate unchanged on concerns of a possible price rise but had left the door ajar for a rate cut in future.

The Central bank revised FY18 GVA Growth forecast to 6.6% from 6.7%. It sees FY19 GVA Growth at 7.2%.

were mixed on Wednesday. Stocks in Tokyo ended about where they’d begun, while Hong Kong’s were down modestly late in the day and South Korean shares finished lower.

First Published: Wed, February 07 2018. 15:30 IST
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Sensex ends lower, Nifty below 10,500 as RBI keeps repo rate unchanged

All that happened in the markets today

All that happened in the markets today
Benchmark indices ended lower on Wednesday after Reserve Bank of India kept the key policy rate unchanged at 6 per cent for the third consecutive time in view of firming inflation. Reverse Repo rate was also maintained at 5.75%.

The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel had last reduced the benchmark lending rate by 0.25 percentage points to 6 per cent last August, bringing it to a 6-year low.

In its December review, the MPC had kept the benchmark interest rate unchanged on concerns of a possible price rise but had left the door ajar for a rate cut in future.

The Central bank revised FY18 GVA Growth forecast to 6.6% from 6.7%. It sees FY19 GVA Growth at 7.2%.

were mixed on Wednesday. Stocks in Tokyo ended about where they’d begun, while Hong Kong’s were down modestly late in the day and South Korean shares finished lower.

image
Business Standard
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Sensex ends lower, Nifty below 10,500 as RBI keeps repo rate unchanged

All that happened in the markets today

Benchmark indices ended lower on Wednesday after Reserve Bank of India kept the key policy rate unchanged at 6 per cent for the third consecutive time in view of firming inflation. Reverse Repo rate was also maintained at 5.75%.

The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel had last reduced the benchmark lending rate by 0.25 percentage points to 6 per cent last August, bringing it to a 6-year low.

In its December review, the MPC had kept the benchmark interest rate unchanged on concerns of a possible price rise but had left the door ajar for a rate cut in future.

The Central bank revised FY18 GVA Growth forecast to 6.6% from 6.7%. It sees FY19 GVA Growth at 7.2%.

were mixed on Wednesday. Stocks in Tokyo ended about where they’d begun, while Hong Kong’s were down modestly late in the day and South Korean shares finished lower.

image
Business Standard
177 22