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Market Wrap: Sensex dips 286 pts, Nifty ends at 10,856 despite RBI rate cut

A 35-basis point (bps) rate cut by the Reserve Bank of India (RBI) failed to lift the investor sentiment on Wednesday as the benchmark indices ended in the red.

BS Web Team  |  New Delhi 

A 35-basis point (bps) rate cut by the Reserve Bank of India (RBI) failed to lift the investor sentiment on Wednesday as the benchmark indices ended in the red.

The S&P BSE Sensex lost 286 points or 0.77 per cent to settle at 36,690.50, with HUL being the top gainer and M&M the biggest loser. The broader Nifty50 index ended the session at 10,855.50, down 93 points or 0.85 per cent.

On the sectoral front, rate-sensitive stocks took the biggest knock with Nifty Bank, Nifty Auto and Nifty Realty slipping 1 per cent to 2 per cent.

Volatility gauge, India VIX climbed nearly 5 per cent to 16.88 levels.

The broader market fared better than the benchmark indexes. The S&P BSE MidCap index slipped 60 points, or 0.44 per cent, to 13,509, while the S&P BSE SmallCap index ended at 12,482 level, down 14 points or 0.11 per cent.

RBI POLICY


The Reserve Bank of India's (RBI's) monetary policy committee (MPC) on Wednesday decided to reduce the repo rate by 35 basis points (bps) to 5.40 per cent to help revive the economy. It was the fourth straight rate cut by the central bank in 2019. The marginal standing facility (MSF) rate and the Bank Rate has been adjusted to 5.65 per cent.

Consequently, the reverse repo rate now stands at 5.15 per cent. The six-member committee lowered the FY20 GDP (gross domestic product) growth forecast to 6.9 per cent from 7 per cent, earlier. The central bank maintained its accommodative stanc

BUZZING STOCKS

Shares of Mahindra & Mahindra (M&M) hit an over five-year low on the BSE in intra-day trade on Wednesday after the company reported a 26 per cent decline in its consolidated net profit before exceptional items at Rs 918 crore for June quarter (Q1FY20). The stock eventually settled at Rs 518.45, down nearly 6 per cent.

First Published: Wed, August 07 2019. 15:46 IST
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