Nifty, Sensex post losses as RBI falls short of 50 bps rate cut hopes
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 record-setting sessions. The decision to lower the benchmark rate by 25 bps to 6% 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%, 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%, 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%. Stocks of software exporters such as TCS, Infosys and Wipro were in the line of fire as they lost up to 1.30% after the rupee gained clout against the dollar. Software exporters receive about 60% 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 yesterday, as per provisional data. Other Asian markets closed mixed. European markets were down at the open
■ 3.30pm: BSE Sensex closed lower by 98 points, or 0.30%, to 32,476.74, while the Nifty 50 fell 33 points, or 0.33%, to 10,081.50. Major gainers were NTPC, Adani Ports, Hero MotoCorp and Reliance Industries (RIL) while major losers were Tata Motors, ONGC and DrReddy’s Labs on BSE.
■ 3.23pm: NTPC, Adani Ports and Hero MotoCorp are major gainers as they post gains to the tune of 4.09%, 2.58%, 2.11%, respectively.
■ 3.01pm: BSE Sensex trades lower by 109 points, or 0.34%, to 32,466 , while the Nifty 50 falls 38 points, or 0.38%, to 10,077. All sectoral indices trade in red. Nifty bank index falls by 0.37%, Nifty financial services index is lower by 0.48%, Nifty PSU bank falls by 0.31%.
■ 2.42pm: BSE Sensex trades lower by 39 points, or 0.12%, to 32,536, while the Nifty 50 falls 13 points, or 0.13%, to 10,102.
■ 2.10pm: Jai Prakash Associates Ltd shares fall 9.31%, Hindustan Copper shares fall 7.57%, Unitech stock falls 5%, and Godrej Consumer Products shares shed 3.79%.
■ 1.30pm: BSE Sensex trades lower by 35 points, or 0.11%, to 32,540, while the Nifty 50 falls 21 points, or 0.21%, to 10,094.
■ 12.41pm: Barring banking and realty stocks, all indices trade in red at NSE. The NSE Nifty realty index is higher by 0.27%, while Nifty bank index is slightly higher by a meagre 0.03%. The NSE Nifty FMCG is lower by 0.89%.
■ 12.30pm: Midcap and small cap stocks edge up while Nifty50, Nifty 100 and Nifty200 trade in red. The NSE Nifty midcap is higher by 0.25%
■ 12.15pm: Tata Motors, BajajAuto, Asian Paints, ONGC and DrReddy’s trade in negative with losses to the tune of 0.93%, 1%, 1.05%, 1.08%, and 1.18%, respectively.
■ 11.45am: BSE Sensex trades lower by 33 points, or 0.10%, to 32,543, while the Nifty 50 falls 17 points, or 0.17%, to 10,097. Metal and FMCG stocks fall. BSE metal index declines by 0.88%, and BSE FMCG index falls by 0.56%.
■ 11.00am: BSE Sensex trades lower by 29 points, or 0.09%, to 32,546, while the Nifty 50 falls 17 points, or 0.16%, to 10,098. Bajaj Auto and Asian Paints fall by 1.10% and 0.84%, respectively.
■ 9.35am: BSE Sensex trades higher by 32 points, or 0.10%, to 32,607, while the Nifty 50 rises 5 points, or 0.05%, to 10,120. Here are the latest updates
■ 9.30am: Reliance Defence and Engineering Ltd fell 2.7% to Rs60.30 after the company reported a loss of Rs230.42 crore in June quarter against Rs134.50 crore a year ago.
■ 9.25am: Hindustan Copper Ltd fell 7% to Rs65.70 . The government will sell 3.70 crore equity shares in Hindustan Copper Ltd (HCL) at a floor price of Rs64.75 apiece through a two-day offer-for-sale (OFS) beginning Wednesday, with an option to issue a similar number of shares in case of over subscription.
■ 9.20am: Gujarat State Fertilizers & Chemicals Ltd rose 3.4% to Rs139.90 after the company said it has re-started its Ammonia-IV plant. Bajaj Auto Ltd fell 0.6% to Rs2,807.45 after the company reported 6.7% decline in its July month sales to 3.07 lakh units.
■ 9.18am: Marico Ltd fell 1.7% to Rs320.70 after the company reported an 11.9% decline year-on-year in net profit for the first quarter as wholesale, rural, and Canteen Stores Department (CSD) channels de-stocked in the weeks before implementation of the goods and services tax (GST) on 1 July, affecting sales volumes.
■ 9.15am: The rupee opened at 64.12 a dollar. At 9.15am, the rupee was trading at 64.13 a dollar, down 0.06% from its Tuesday’s close of 64.19.
■ 9.10am: Lupin Ltd rose 1.4% to Rs1,032 after US drug regulator approved generic lidex ointment. Hero MotoCorp Ltd rose 1.4% to Rs3,772 after the company reported 17% increase in its July sales to 6.23 lakhs units.
■ 9.05am: The 10-year bond yield was at 6.445%, compared to its previous close of 6.442%. Bond yields and prices move in opposite directions.
■ 9.00am: Asian currencies were trading lower. South Korean won was down 0.31%, Taiwan dollar 0.23%, Singapore dollar 0.18%, Japanese yen 0.17%, Thai Baht 0.13%, China renminbi 0.12%, Philippines peso 0.1%, Indonesian rupiah 0.04%.
With inputs from PTI