Lower domestic growth worrisome for markets, RBI rate cut fails to cheer

Global slowdown adds to the worries, as any improvement in Indian economy is only expected to start after 4-6 months, say experts

The Reserve Bank of India (RBI)'s decision to cut policy rates by another 25 basis points (bps) in its fourth bi-monthly policy meeting on Friday failed to cheer investors. While the rate cuts were closer to the lower band expectations of 25-40 bps, the markets see the cut in growth estimates as a bigger worry. With a sharp 80 bps cut in FY20 GDP forecast to 6.1 per cent, the BSE Sensex and Nifty 50  fell over one per cent on Friday. Including the combined reduction of 50 bps in previous three occasions, the total cut in FY20 GDP growth