Sensex tops 30K on RBI rate cut, ends in red on profit-booking

The Sensex touched a high of 30,024.74 points and a low of 29,897.93 points in the trade so far.

March 04, 2015 09:49 am | Updated April 02, 2016 07:54 am IST - Mumbai

The Sensex touched a high of 30,024.74 points.

The Sensex touched a high of 30,024.74 points.

A surprise rate cut by RBI on Wednesday powered the Sensex to cross the historic 30,000 mark but sustained selling across sectors dragged down the benchmark by a sharp 213 points at close, snapping a four-day Budget rally.

It was a memorable moment for the India markets as both the indices the BSE Sensex and the NSE Nifty conquered the 30,000 and 9,100 milestone respectively in early trade as RBI Governor Raghuram Rajan surprised the street for the second time in two months by cutting the benchmark interest rate by 0.25 per cent in an out—of—turn policy action.

However, the initial excitement proved to be short—lived as investors, both domestic and foreign, started booking profits after the 850—point rally in previous four sessions.

Major laggards in Sensex included Sesa Sterlite, Hindalco, Tata Power, Axis Bank, SBI, M&M, Coal India and Wipro.

Banking, metal, power and auto shares faced the brunt.

The Sensex, which logged its all—time high of 30,024.74 within minutes of opening, fell to the day’s low of 29,289.05 in the last 90 minutes of trading before closing at 29,380.73 —— down a hefty 213 points or 0.72 per cent.

The Sensex’s previous life high of 29,844.16 was hit on January 30 but it had fallen 499 points at close on that day.

“A rate cut before the scheduled meeting in April 2015 is an unambiguous signal to the markets that it is satisfied with the government’s commitment to medium—term fiscal consolidation plan,” said Ajay Bodke, Head — Investment Strategy & Advisory, Prabhudas Lilladher Pvt Ltd.

The 50—share NSE Nifty also made a new high 9,119.20, surpassing its previous intra—day high of 9,008.40 hit yesterday. However, the emergence of profit—booking at record levels dragged the index down by 73.60 points, 0.82 per cent down, to 8,922.65 at closing bell.

In the 30—share Sensex pack, 24 scrips ended with sharp cut while the remaining six counters finished in the green.

The total market breadth turned weak as 1,887 stocks declined, 1,003 advanced while 118 unchanged.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 772.92 crore yesterday, as per provisional data from stock exchanges.

Elsewhere in the region, most equities ended in red tracking overnight selloff in US stocks.

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 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.