Sensex falls over 150 points as RBI keeps repo rate unchanged

Benchmark indices tumble as RBI kept repo rate unchanged at 6.25%. The central bank also cut FY17 Gross Value addition (GVA) estimate to 7.1% from 7.6% earlier which added to the fall.

Sensex fell as much as 200 points as soon as the policy was announced while Nifty breached its crucial 8,100 levels.
 
At 2:32 pm, the S&P BSE Sensex was trading at 26,227, down 165 points, while the broader Nifty50 was ruling at 8,108, down 35 points. BSE Midcap index fell 0.60%, while BSE Smallcap index fell 0.45%.
 

Market breadth depicted fall with 1,080 advances over 1,424 declines on the BSE. 173 stocks remained unchanged.

"The decision of keeping the rate unchanged is we believe is mainly due support the demonetization move taken by the government. However going forward we expect the possibility of rate cut up to  50 bps over next 2-3 policy to limit the downside from demonetization of higher denomination notes and to put a positive impact on easing consumer inflation," said CapitalVia Research.

Meanwhile, RBI also withdrew incremental cash reserve ratio (CRR) imposed recently on Rs 3.24 lakh crore of deposits, from the fortnight starting December 10.
 
BSE Bankex pares all its gains to fall over 1.% led by losses in Bank of Baroda (2%), PNB (1.56%), ICICI Bank (1.42%). SBI (1.37%), Axis Bank (1.29%) and HDFC Bank (1.14%).

HDFC was the top gainer on BSE Sensex which gained 1.66% followed by Adani Ports, up 1.40%.

Meanwhile, among auto stocks gained lifted by Eicher Motors, Bharat Forge, Hero Moto, Tata Motors and M&M.

Among losers, Sun Pharma was the biggest laggard on BSE Sensex, down over 6% followed by TCS and Tata Steel which fell over 1%.