Sensex drops 152 pts after RBI lowers GDP growth estimates
The BSE benchmark Sensex on Tuesday recovered by over 27 points in early trade as funds and investors made selective buying ahead of the RBI's quarterly monetary policy review, amid a firming Asian trend.business Updated: Jul 30, 2013 16:52 IST
The BSE benchmark Sensex on Tuesday fell 152 points at mid-session on funds selling as the Reserve Bank lowered GDP projections and kept key interest rates unchanged.
After a better start, the 30-share index dropped by 151.60 points, or 0.77% to 19,441.68 at 1300 hrs, adding losses of 710 points in the previous four sessions.
Similarly, the broad-based National Stock Exchange index Nifty dipped below a crucial 5,800 level by losing 39.65 points, or 0.68%, to 5,792 with banking and interest related stocks leading the decline.
Brokers said the RBI projections of a lower GDP to 5.5% from earlier estimates of 5.7% for the current fiscal in its quarterly monetary policy meeting mainly dampened the trading sentiment.
They said the bank keeping key interest rates unchanged was much to market expectations but a weaker rupee further dampened the trend.
The banking and interest-sensitive shares suffered the most on fears the unaltered interest rate might hamper earnings of these companies.