Sensex, Nifty rebound after RBI policy, end in the red on global cuesbusiness Updated: Apr 06, 2017 16:32 IST
Markets were cautious ahead of RBI’s monetary policy meet. (HT photo)
Indian shares ended slightly lower on Thursday, cutting early losses after RBI left policy lending rate unchanged, announced steps to drain extra cash from banks and projected a higher growth in Asia’s third largest economy.
Indian benchmarks--Sensex and Nifty--fell sharply before the RBI policy, taking cues from Asian markets that were muted on overnight losses in the US.
The Sensex closed down 0.16% at 29,927.34, while the Nifty ended 0.03% lower at 9,261.95, after having fallen as much as 0.5% before the central bank’s policy announcement.
Investors took some comfort from RBI’s decision to keep policy lending rate--repo--unchanged at 6.25% and hiking the policy borrowing rate--reverse repo--to 6% from 5.75% earlier, to drain extra cash from banks that were piled up after the demonetisation drive.
Investors are also keenly watching the progress on the Parliament debate over the GST bills. The Rajya Sabha is likely to debate the four crucial GST bills and return them. The legislation may be notified within a few days so that the government meets the July deadline.
On Wednesday, the 30-share index Sensex hit all time high 29974.24, while Nifty too hit a record 9,265.
The NSE Nifty was also down by 38.25 points or 0.4%, at 9,225.90.
Tata Steel and Reliance Industries led the Sensex chart gaining 1.7% each followed by Bajaj Auto 1.5%, Power Grid 1.3% and GAIL 1.2%.
Brokers said besides a weak trend in global markets after Federal Reserve meeting minutes suggested the US central bank was considering tightening monetary policy, caution ahead of Reserve Bank’s monetary policy to be announced later in the day influenced the sentiment.
Among other Asian markets, Japan’s Nikkei was down 1.4% while Hong Kong’s Hang Seng index fell 0.49% in early trade. Shanghai Composite Index, however, marginally up.
European markets traded mixed with FTSE-100 and DAX in the red.
The US Dow Jones Industrial Average ended 0.2% lower in Wednesday’s trade.