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MARKET WRAP: Sensex ends 434 pts lower as RBI cuts GDP forecast; banks slip
All that happened in markets today.
A 25 basis point (bps)-rate cut by the Reserve Bank of India (RBI) on Friday failed to cheer market participants as concerns over slowing economic growth dented investor sentiment. In its fourth bi-monthly monetary policy meet, the RBI's monetary policy committee (MPC) did cut the repo rate, as widely expected; however, a sharp reduction in the GDP growth forecast to 6.1 per cent for the financial year 2019-20 (FY20) caught investors off guard.
Benchmark indices, S&P BSE Sensex and NSE's Nifty50, lost over 1 per cent, thus taking their losing streak to the fifth consective session.
The S&P BSE Sensex dropped 434 points or 1.14 per cent to settle at 37,673.31. Financial stocks led the decline with HDFC Bank, ICICI Bank, and Axis Bank falling up to over 3 per cent.
On the NSE, the frontline index Nifty50 ended at 11,175, down 139 points or 1.23 per cent.
On a weekly basis, Sensex shed nearly 3 pe cent while Nifty50 lost 2.93 per cent.
On the sectoral front, Nifty Bank index slid nearly 700 points or 2.40 per cent to settle at 27,731.85 levels, with 10 out of 12 constituents ending in the red. Nifty IT index was the only sectoral index on the NSE that ended in the green. The Nifty IT index ended at 15,340.30, up 62 points or 0.41 per cent.
In the broader market, the S&P BSE MidCap index lost 131 points or 0.94 per cent to settle at 13,713.79 levels, while the S&P BSE SmallCap index closed at 12,809, down 102 points or 0.79 per cent.
Asian stocks edged up on Friday, thanks to gains on Wall Street, but signs of widening cracks in the global economy curbed risk appetite as markets looked to a key US job report that could determine whether the Federal Reserve cuts rates further. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent. Japan's Nikkei stock index rose 0.22 per cent, and Australian shares rose 0.54 per cent.
The pan-region Euro Stoxx 50 futures were up 0.44 per cent, German DAX futures 0.33 per cent higher and FTSE futures advanced 0.69 per cent.
In commodities, oil futures were higher ahead of the weekend but remained on track for large weekly losses on fears that slower global economic growth will hurt fuel demand.
(With inputs from Reuters)