The benchmark indices settled over 0.5 per cent lower on Wednesday even as the Reserve Bank of India
(RBI) kept the repo rate and reverse repo rate unchanged at 6.50 per cent and 6.25 per cent respectively, in its bi-monthly monetary policy.
The S&P BSE Sensex
ended at 35,884, down 250 points or 0.7 per cent, while the broader Nifty50 index settled at 10,783, down 87 points or 0.8 per cent.
Among sectors, the Nifty
Metal index settled 3.7 per cent lower weighed by Jindal Steel and Power Hindalco and Tata Steel. Nifty
Auto index, too, slipped 2.3 per cent due to a fall in Bharat Forge and Tata Motors. The Nifty
Bank fell 0.6 per cent dragged down by IndusInd Bank, YES Bank and ICICI Bank.
In the broader market, both the S&P BSE MidCap index and the S&P BSE SmallCap index fell 1.2 per cent each to settle at 14,914 and 14,338 respectively.
RBI Monetary Policy
As was widely expected, the Monetary Policy Committee (MPC) of the Reserve Bank of India
(RBI) on Wednesday kept the key repo rate unchanged at 6.50 per cent. The reverse repo rate also stands unchanged, at 6.25 per cent. The statutory liquidity ratio (SLR), meanwhile, was cut by 25 basis points to 19.25 per cent from January 1, 2019. The central bank also said that SLR would be reduced by 25 basis points every quarter until it reaches the 18 per cent level. It was RBI's fifth bi-monthly monetary policy meet of the financial year 2018-19. READ MORE
Asian stocks slid on Wednesday, dragged down by Wall Street’s tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.35 per cent. Hong Kong’s Hang Seng retreated 1.55 per cent and the Shanghai Composite Index dipped 0.2 per cent. Japan’s Nikkei dropped 0.8 per cent and South Korea’s KOSPI shed 0.5 per cent. Australian stocks lost 1 per cent, pressured by global losses.
(with Reuters input)