Mumbai: Stock indices on Wednesday appeared unmoved by the RBI's quantum of policy rate cut as both the Sensex and the Nifty got off their peaks to end lower after two straight
The decision to lower the benchmark rate by 25 bps to 6 percent was already factored in, traders said. They added that no change in cash reserve ratio (CRR) left the markets cold too.
This is the first rate cut since October 2016 and the key lending rate is now at a 6-year low.
The 30-share flagship index, which sprinted to an all-time high earlier, caved in post RBI policy announcement, before ending down 98.43 points, or 0.30 percent, at 32,476.74.
The 50-share Nifty scaled a fresh new peak at the outset. However, it tripped and settled down 33.15 points, or 0.33 percent, at 10,081.50.
Sectoral performance was mixed though.
"The market went through consolidation as 25 bps rate cut by the RBI was on expected lines... whereas the investors expected a change. The rupee continues to appreciate due to strong liquidity from FII inflows in debt led by stability and attractive interest rate," said Vinod Nair, Head of Research, Geojit Financial Services.
Sun Pharma, Dr Reddy's, Tata Motors and Kotak Bank played a big part in the fall, down by up to 1.95 percent.
Stocks of software exporters such as TCS, Infosys and Wipro were in the line of fire as they lost up to 1.30 percent after the rupee gained clout against the dollar. Software exporters receive about 60 percent of their revenues in dollar.
Gains in NTPC, Hero MotoCorp, Adani Ports, Reliance Industries and Lupin contained the overall decline to an extent.
In line with the trend, mid-cap and small-cap indices hit a soft patch.
Foreign portfolio investors (FPIs) net offloaded shares worth Rs 945.83 crore while DIIs net bought Rs 1,390.65 crore on Tuesday, as per provisional data.
Other Asian markets closed mixed. European markets were down at the open.
Published Date: Aug 02, 2017 05:11 pm | Updated Date: Aug 02, 2017 05:11 pm