ALSO READSensex ends below 36000, Nifty marginally lower as LTCG tax proposed Sensex ends lower, Nifty below 11050 as investors await Budget Nifty down nearly 1% but holds 10,600; Sensex ends over 300 pts lower Sensex down 67 points, Nifty ends above 10,100 ahead of RBI policy outcome Nifty ends 1.2% higher, Sensex up 352 points; auto, realty indices gain
Top sectoral loser: Nifty IT Sectoral Trend Sensex heatmap Markets at close Benchmark indices pared some losses after sliding more than 3% and the rupee weakened as a global market rout whacked sentiment, adding to existing investor concerns ahead of a central bank meeting this week and a new capital gains tax later in the year. The S&P BSE Sensex ended at 34,195, down 561 points while the broader Nifty50 index settled at 10,498, down 168 points. RBI in a fix, market eyes rate hike amid confidence crisis The Reserve Bank of India’s job as the government’s debt manager just got harder after the federal budget unveiled a near-record $95 billion borrowing plan in the coming fiscal year. Governor Urjit Patel needs to keep interest rates low to ensure Prime Minister Narendra Modi can bridge a widening fiscal deficit. But he also needs to bring down an inflation rate that breached the 4 per cent midpoint of the target band late last year, and which is expected to climb as the government increases spending before a general election next year. READ MORE RBI to turn hawkish, keep rates on hold through middle of 2019: Poll The Reserve Bank of India will keep interest rates on hold through at least the middle of 2019 even though inflation is above its medium-term target and is expected to stay that way, a Reuters poll found. A majority of economists also expect the central bank's tone to turn hawkish when it announces its latest policy decision on Wednesday. In the poll of 60 economists, taken after the Budget announcement, 58 said the RBI would keep key rates unchanged - the repo at 6.00 per cent and the reverse repo at 5.75 per cent - when it meets on Wednesday. The other two forecast an increase. READ MORE
sliding more than 3% in intra-day trade a global market rout whacked sentiment, adding to existing investor concerns ahead of Reserve Bank of India (RBI) meeting this week to review key rates.
The broader Nifty50 and the benchmark S&P BSE Sensex each fell as much as 3.7% in on Tuesday, the sixth consecutive session of falls, with both erasing their gains for the year. The S&P BSE Sensex ended at 34,195 levels, down 561 points while the broader Nifty50 index settled at 10,498, down 168 points.