Domestic equity benchmarks S&P BSE Sensex and NSE Nifty 50 won three days on Friday due to losses in banking and financial services stocks after the Reserve Bank of India (RBI) announced a surprising reduction in key lending rates. . The Sensex fell by over 450 points during the session, while the Nifty fell slightly below the 9,000 mark. The RBI also extended a moratorium for six months, leading to a sell-off in banking and financial stocks.
Here are 10 things to know about the market today:
- The Sensex was down 260.31 points or 0.84 percent to end at 30,672.59 and the Nifty was down 67,0 points or 0.74 percent at 9,039.25 against its previous close.
- The RBI cut the repo rate by 40 basis points (bps) to 4 percent, its lowest since 2000. The central bank also reduced the reverse repo rate by 40 basis points to 3.35 percent.
- Its announcements followed an emergency meeting of the Monetary Policy Committee, and aimed to counter the economic decline from a two-month-long lockdown to prevent the spread of the coronavirus epidemic.
- Reserve Bank of India Governor Shaktikanta said the Monetary Policy Committee (MPC) had voted to maintain its “adjustment” stance, and its members voted in favor of the cut amount in the ratio of 5: 1.
- The RBI has cut the repo rate by a total of 115 bps since the lockout began in late March.
- Seven of the 11 sectors compiled by the National Stock Exchange fell as the Nifty Financial Services Index fell 3 percent. Nifty Bank, Private Bank, PSU Bank, Realty and Metal sectors declined by 1% and 2.85%.
- On the other hand, Nifty IT index was the biggest gainer, which was 1.4 percent higher.
- Mid- and small-cap stocks also saw selling pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices down 0.7 and 0.6 percent, respectively.
- The biggest losers in the Nifty were Axis Bank, HDFC, Bajaj Finserv, Bajaj Finance, Hindalco, ICICI Bank, Tata Steel, Bajaj Auto, JSW Steel and HDFC Bank. On Flipside, Zee Entertainment, Mahindra & Mahindra, Cipla, Shree Cements, Infosys and Britannia Industries were the major ones.
- Overall market conditions were negative, as 1,321 shares closed lower while 968 ended higher on the BSE.