Sensex surrenders initial gains; down 195 points

October 30, 2012 09:56 am | Updated June 24, 2016 04:43 pm IST - Mumbai

The Sensex erased initial gains and fell 195 points today after RBI kept key interest rate unchanged and lowered economic growth estimate to 5.8 per cent for 2012—13, from 6.5 per cent projected earlier.

A fall in interest—linked banking, realty and auto stocks mainly influenced the trading sentiment.

Marketmen said investors ignored RBI move to reduce the cash reserve ratio — the percentage of deposits banks keep with the Reserve Bank — by 0.25 per cent to infuse additional liquidity that will inject Rs 17,500 crore into the financial system. CRR now stands at 4.25 per cent.

The Sensex, which had opened with gains on investor hopes of interest rate cuts, fell following the policy announcement to trade at 18,441.26 —— showing a decline of 194.56, or 1.04 per cent at 1151 hrs.

The broad—based National Stock Exchange index Nifty was down by 68.15 points to 5,597.45.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.