Nifty PSU Bank index ends 0.52% higher. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) IDBI BANK 62.15 58.85 3.30 5.61 PUNJAB NATL.BANK 87.40 85.10 2.30 2.70 UNION BANK (I) 88.05 86.45 1.60 1.85 ORIENTAL BANK 81.95 80.70 1.25 1.55 BANK OF INDIA 95.35 94.40 0.95 1.01
The S&P BSE Sensex ended at 37,522, down 85 points while the broader Nifty50 index settled at 11,346, down 10 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 37,711.87 while the Nifty50 index touched its record high level of 11,390.55.
Among sectoral indices, the Nifty PSU Bank index ended 0.52% higher led by IDBI Bank and Punjab National Bank, while Nifty Auto index settled 0.76% lower due to fall in Exide and Motherson Sumi.
MONETARY POLICY REVIEW
The central bank's Monetary Policy Committee also increased the reverse repo rate by 25 bps to 6.25%, while keeping a neutral stance on policy. It pegged retail inflation at 4.8 per cent for the second half of the current fiscal. It also kept the GDP forecast for the current fiscal unchanged at 7.4 per cent and saw it at 7.5-7.6 per cent in the second half of the current fiscal.
This was the first time since October 2013 that the central bank hiked repo rate --- the rate at which the RBI lends to commercial banks --- at two consecutive policy meetings.
The RBI policy decision does come as a surprise given that the overall inflation projections have not really changed significantly for the year being put at 4.6% in Q2 and 4.8% in H2, writes Madan Sabnavis, Chief Economist, CARE Ratings. The risks pointed out by the RBI still remains the same with the MSP, oil price, demand, HRA factors driving the decision to hike rates, he says. READ MORE HERE
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent, erasing earlier gains, while Japan's Nikkei stock index gained 0.8 per cent. The Shanghai Composite index fell 0.8 per cent, while the blue-chip CSI300 index lost 1 per cent.
(with wire inputs)