 "RBI Governor Shaktikanta Das during a press conference in Mumbai on Thursday 06th June, 2019. Photo: Kamlesh Pednekar")
The Reserve Bank of India’s (RBI’s) decision to cut repo rate by 25 basis points and changing its policy stance to ‘accommodative’ (indicating no further rate hikes for now) failed to boost investor sentiment in rate-sensitive stocks. Indices such as Nifty Bank, Nifty Financial Services and Nifty Realty fell up to 2 per cent on Thursday.
The street expected more measures on liquidity, and a 25 basis point rate cut was already factored in. Moreover, rate cut transmission to the end borrower is what the market is still waiting for, which would also provide the much needed impetus to private
