The BSE benchmark Sensex today dipped below the 20,000-level by losing 112 points on profit selling by investors despite Reserve Bank of India (RBI) reducing lending rates by 0.25 per cent.
The Sensex ended lower by 112.45 points, or 0.56 per cent, to 19,990.90.
Though the gauge touched the day’s high of 20,203.66 following interest rate cut announcement, the sensex touched a low of 19,970.05 as the RBI projected a lower economic growth for the current fiscal.
The broad-based National Stock Exchange index Nifty lost 24.90 points, or 0.41 per cent, to 6,049.90, after touching the day’s high of 6,111.80.
The RBI trimmed the economic growth projection for the current fiscal to 5.5 per cent, from 5.8 per cent estimated earlier and said it was necessary to arrest the decline in growth as inflation risks moderate.
The market failed to cheer the RBI’s decision to the reduction of interest rates by 0.25 per cent and the release of Rs. 18,000 crore into the financial system.
Besides banking stocks, the two index heavyweight with their nearly 17 per cent weightage Reliance Industries and Infosys fell by 1.68 per cent to Rs. 882.55 and 0.54 per cent to Rs. 2,795, respectively.
Among the lenders, State Bank of India fell by 1.32 per cent to Rs. 2,357.30, HDFC Bank by 2.54 per cent to Rs. 653, Bank of India 4.01 per cent to Rs. 341, Bank of Baroda by 2.64 per cent to Rs. 847.15, Canara Bank by 2.23 per cent to Rs. 471.80, Yes Bank by 1.92 per cent to Rs. 512.25 and Punjab National Bank by 1.45 per cent to Rs. 859.30.