Equity benchmarks Sensex and Nifty surrendered early gains to close with losses on Thursday, snapping their four-day winning streak as investors pared exposure to auto, bank and IT stocks after the RBI left its key interest rate unchanged.
After remaining in the positive territory for most of the session, the 30-share BSE Sensex fell 294.32 points or 0.47 per cent to settle at 62,848.64. During the day, it tumbled 353.23 points or 0.55 per cent to 62,789.73.
The NSE Nifty declined 91.85 points or 0.49 per cent to end at 18,634.55. “Investor sentiment took a downturn following the in-line monetary policy announcement by the RBI, as the market had higher expectations for a more optimistic revision in the inflation outlook, taking into account the recent easing of inflation data. The RBI’s decision to lower the inflation rate by only 10 bps suggests a cautious stance due to geopolitical uncertainties, the potential impact of El Nino and the increase in Minimum Support Price, Vinod Nair, Head of Research at Geojit Financial Services, said.
Kotak Mahindra Bank was the biggest loser in the Sensex pack, sliding 2.68 per cent, followed by Tech Mahindra, Mahindra & Mahindra, Axis Bank, Hindustan Unilever, Tata Motors, Tata Consultancy Services, Bajaj Finserv, Bajaj Finance, Nestle and Titan.
In contrast, NTPC, Power Grid, Larsen & Toubro, HDFC, Reliance and HDFC Bank were the gainers. “Indian equities witnessed profit booking on the day of the RBI policy meeting outcome, which was on expected lines...post the RBI policy outcome; markets saw some profit booking in the interest rate-sensitive sectors, which dragged the indices down...Except for Metals, all sectors ended in red,” Siddhartha Khemka, head - of retail research, at Motilal Oswal, said.
