Repo rate is the rate at which the central bank lends money to the commercial banks, in case of any shortfall in funds. Also, the central bank maintained its accommodative policy stance.
At 12:18 pm, Nifty Bank, Nifty PSU Bank, Nifty Private Bank and Nifty Realty indices were down 1 per cent each, as compared to a 0.27 per cent decline in the benchmark Nifty 50 index. These indices have fallen by up to 2 per cent from their respective intra-day highs on the National Stock Exchange (NSE). Nifty Auto index, however, was trading in the green with 0.31 per cent gain, was down 1 per cent from early morning high of 7,579.
Indiabulls Housing Finance, Federal Bank, Prestige Estates, Sobha, DCB Bank and Bank of India were down more than 1 per cent. Mahindra & Mahindra, Ashok Leyland, Hero MotoCorp, Bajaj Auto and Maruti Suzuki India, however, trading higher between 1 per cent and 5 per cent on the NSE.
The RBI slashed the GDP growth projection for financial year 2019-20 to 6.1 per cent from the earlier forecast of 6.9 per cent.
The MPC notes that the negative output gap has widened further. While the recent measures announced by the government are likely to help strengthen private consumption and spur private investment activity, the continuing slowdown warrants intensified efforts to restore the growth momentum, it said in a policy statement.