RBI disappoints mkts; Sensex drops 122 pts

Extending losses for the third straight day, the benchmark BSE Sensex on Tuesday slipped 122 points to close at 29,000.14.

Interest rate-sensitive realty and baking stocks bore the brunt of selling after the Reserve Bank of India left repo rate unchanged at 7.75 per cent but cut SLR (statutory liquidity ratio) by 0.50 per cent to 21.50 per cent. The 30-share index was up 130 points higher in early trade ahead of RBI policy announcement but shed the gains to trade below 29,000.

It finally settled at 29,000.14, showing a loss of 122.13 points or 0.42 per cent from its previous close. The Sensex has lost 681.63 points or 2.30 per cent in the three days. The National Stock Exchange’s Nifty also fell 40.85 points or 0.46 per cent to finish at 8,756.55.

"Markets showed its disappointment on the outcome of monetary policy by trimming the day's gains," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Meanwhile, foreign portfolio investors sold shares worth a net Rs 629.97 crore on Monday, according to data from stock exchanges.

Of 30 Sensex stocks,16 ended lower while 14 others finished higher.

Axis Bank 4.95 pc was the biggest loser. Tata Power lost 4.12 pc, Bajaj Auto 3.74 pc, M&M 3.52 pc, HDFC 2.98 pc, Cipla 2.52 pc.

However, SSLT rose by 6.23 pc, Bharti Airel 3.42 pc, Reliance Ind 3.25 pc and ONGC 2.64 pc.

Among the BSE sectoral indices, healthcare fell by 0.92 pc and auto 0.66 pc while FMCG rose by 1.06 pc, Metal 0.80 pc and Consumer Durable 0.50 pc.

The total market breadth turned negative as 1,531 stock ended in the red, 1,332 closed in the green and 118 ruled steady. Total turnover rose to Rs 4,737.88 crore from Rs 4,201.09 crore yesterday.