Interest rate sensitive stocks traded in a narrow range. Realty stocks, however, bucked the trend with the Nifty Realty index rallying over 1 per cent post the development.
All that happened in the markets today
Given the severity of the situation due to the Covid-19 pandemic, the timing of rate transmission holds great significance.
In India, growth outlook over the next couple of quarters has become more uncertain on the prospects of a global recession and severe investor risk aversion.
Following the November print of 5.54%, RBI had sprung a surprise and opted to hold the repo rate at 5.15 per cent. It, however, continued with the accommodative stance as long as it was necessary.
The RBI slashed the GDP growth projection for financial year 2019-20 (FY20) to 6.1 per cent from the earlier forecast of 6.9 per cent.
The Indian markets are among the top performers in the emerging market pack thus far in calendar year 2018 (CY18), with the S&P BSE Sensex and the Nifty50 rallying 9.5 per cent and 7 per cent.