Sensex cold to RBI’s 25 bps rate cut, down 129 points | business-news | Hindustan Times
Today in New Delhi, India
Nov 17, 2017-Friday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Sensex cold to RBI’s 25 bps rate cut, down 129 points

Traders said the RBI’s decision to lower the policy rate to 6 % failed to boost sentiment. This is the first rate cut since October 2016 and the interest rate is now at a 6-year low. They added that no change in cash reserve ratio (CRR) too had a bearing.

business Updated: Aug 02, 2017 16:26 IST
Sensex remained nonchalant as RBI cut policy rates  by 25 bps.
Sensex remained nonchalant as RBI cut policy rates by 25 bps. (PTI)

Benchmark Sensex fell 129 points today after the Reserve Bank cut repo rate by 25 bps, which was in line with market expectations.

Traders said the RBI’s decision to lower the policy rate to 6 % failed to boost sentiment.

This is the first rate cut since October 2016 and the interest rate is now at a 6-year low.

They added that no change in cash reserve ratio (CRR) too had a bearing.

The 30-share index, which had retreated from record highs in late morning trade, was trading down 128.80 points, or 0.40 %, at 32,446.37 soon after the RBI announced its bi-monthly monetary review.

The barometer had touched an all-time high of 32,686.48 (intra-day) in the opening trade.

The wider index Nifty too slipped from a record high by falling 45.95 points, or 0.45 %, to 10,068.70. The gauge had touched an all-time high of 10,137.85 at the outset today.

In the wake of record low retail inflation, the monetary policy committee (MPC) headed by RBI Governor slashed policy repo rate by 25 basis points to 6 % and reverse repo by a similar proportion to 5.75 %.

The central bank also retained the growth forecast at 7.3 % for the current fiscal.

The banking index, however, was marginally up by 0.14 % as shares of state-run SBI rose 0.24 %, Axis Bank 0.77 % and ICICI Bank 0.25 %.

However, the BSE realty index was 0.27 % down while auto shed 0.16 %.