Markets

Markets end lower in a see-saw trade as RBI surprises with status quo

A view of the BSE building in Mumbai. File

A view of the BSE building in Mumbai. File   | Photo Credit: PTI

Benchmark indices Sensex and Nifty closed lower in topsy-turvy trade on Thursday after the Reserve Bank surprised with its decision to hold key policy rates.

At the closing bell, the 30-share BSE gauge Sensex was lower by 70.70 points or 0.17% at 40,779.59. The index swung between losses and gains after the central bank kept the rates unchanged.

The 50-scrip NSE Nifty settled the day with a loss of 24.80 points or 0.21% at 12,018.40.

On the Sensex chart, Bharti Airtel, Tata Steel, IndusInd Bank, HeroMoto Corp and Tata Motors were among the major laggards.

On the other hand, TCS, ITC, L&T, Infosys and Tech Mahindra led the gains.

Sectorally, metal index fell the most, followed by basic materials and energy indices.

Capital goods, IT and tech indices moved higher.

The RBI unexpectedly kept benchmark interest rates unchanged on concerns of headline inflation breaching its medium-term target.

After five consecutive cuts in interest rates this year, the six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das unanimously voted to hold the key repo rate at 5.15% and reverse repo rate at 4.90%.

Bankers and economists had widely expected the central bank to cut rates for a sixth time to support a slowing economy, whose growth rate slipped further to a six-year low of 4.5% in the September quarter from 7% a year back.

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Printable version | Feb 27, 2020 11:21:48 AM | https://www.thehindu.com/business/markets/markets-end-lower-in-a-see-saw-trade-as-rbi-surprises-with-status-quo/article30184691.ece

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