Press Esc to close
Friday 24 February 2017
News updated at 8:20 PM IST
Weather
Max: 35°C
Min : 19.2°C
In Bengaluru
clear sky

RBI's ''hawkish'' stance makes mkts jittery, Sensex down 160pts

Mumbai, May 3, 2013, (PTI):
File photo.
The BSE benchmark Sensex today slumped by 160 points to close at 19,575.64 points on profit selling in rate-sensitive stocks led by ICICI Bank and Tata Motors, as RBI adopted a "hawkish" stance in its monetary policy 2013-14 overshadowing its 0.25 per cent cut in repo rate.

Stocks remained under pressure throughout the day as the 0.25 percentage point rate cut was already factored in and hence profit-booking emerged at higher levels after three days of rally, brokers said.

"While RBI did cut policy rates by 25 basis points as expected, it has adopted an unexpectedly hawkish stance despite mounting evidence for easing inflation going ahead and still soft economic activity," Motilal Oswal Financial Services CMD Motilal Oswal said.

The banking sector index suffered the most by losing 2.40 per cent as ICICI Bank, SBI, HDFC Bank and suffered losses in the range of 1-4 per cent. ICICI Bank and SBI at 3.57 per cent and 3.60 per cent respectively were among the biggest losers.
The RBI in its annual monetary policy said upside risks to inflation in the near term are still significant and monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures, dashing investor hopes of further softening of rates.

Also fanning fresh concerns over growth, RBI projected 5.7 per cent expansion rate for current fiscal against government estimate of 6.1-6.7 per cent.

"In our view, Inflation is clearly on a downward trajectory ... the stance of the monetary policy was a bit more hawkish," Dinesh Thakkar, CMD, Angel Broking said.
"It seems unlikely that any material monetary transmission would take place on account of the repo cut," Brokerage India Infoline said.

The BSE 30-share barometer resumed lower and moved in negative terrain most of the day in a volatile trade.

Gains in Infosys, Sterlite, Hindalco, Jindal Steel, RIL , Sun Pharma and L&T, saved the market from bigger fall.

The Sensex settled at 19,575.64, a fall of 160.13 or 0.81 per cent. In last three days, it gained 449.05 points or 2.32 per cent.

The broad-based National Stock Exchange index Nifty fell by 55.35 points, or 0.92 per cent to 5,944 points after touching a low of 5,930.15 points.

The auto sector was the second worst performer by losing 1.50 per cent as stocks of Tata Motors, Maruti Suzuki and Hero MotoCorp fell in the range of 2 per cent to 3.76 per cent. Tata Motors with losses of 3.76 per cent was the biggest loser among 30 Sensex stocks.

The realty sector index fell by 1.39 per cent, and consumer durable index by 1.06 per cent. In 30-BSE index components, 18 stocks declined led by GAIL India, Cipla, ITC, ONGC and TCS.

"The market was also hoping for a CRR cut which didn’t come through. Weak deposit mobilisation and lower government spending continue to pressurise system liquidity in a modest credit growth environment," India Infoline said in a note.

Among other losers, Gail India fell by 2.99 per cent, Bajaj Auto by 2.56 per cent, Cipla by 1.86 per cent, ONGC by 1.55 per cent and HDFC by 1.06 per cent.

However, Jindal Steel rose by 4.22 per cent, Hindalco Ind by 2.30 per cent, Tata Steel by 2.22 per cent, Sun Pharma by 1.84 per cent and Infosys by 0.91 per cent.
Foreign institutional investors bought shares worth a net Rs 1,429.94 crores yesterday, as per provisional data.

Most Asian stocks ended higher for the first time in three days today as Macquarie Group reported higher earnings and investors awaited the release of US job data.
Key benchmark indices in China, Hong Kong, Taiwan and South Korea rose by 0.08 to 1.44 per cent while indices in Japan and Singapore fell by 0.76 to 0.95 per cent.

European stocks were slightly higher in thier early trade ahead of US non-farm payroll data due later, amid hopes the data will show jobs growth. Key indices in UK and Germany inched up by 0.05 per cent to 0.08 per cent while France CAC was quoted down by 0.16 per cent.

The market breadth turned negative as 1,339 stocks ended lower while 1,027 stocks finished higher while 137 ruled ruled steady. The total turnover rose to Rs 2,225.69 crs from Rs 2,108.92 crs yesterday.

 

Go to Top

Photo Gallery
Emma Watson arrives for the Beauty And The Beast Premiere...

Emma Watson arrives for the Beauty And The Beast Premiere...

Army jawans firing air shots to pay tributes to L/NK Ghulam Mohi ud din Rather during...

Army jawans firing air shots to pay tributes to L/NK Ghulam Mohi ud din Rather during...

The yet unnamed polar bear cub and its mother Giovanna explore the open air enclosure...

The yet unnamed polar bear cub and its mother Giovanna explore the open air enclosure...

Devotees offering prayers to lord Rameshwara on the occasion of 'Shivaratri' at Rameshwara Swamy...

Devotees offering prayers to lord Rameshwara on the occasion of 'Shivaratri' at Rameshwara Swamy...

A cow stands with the cow photographer in front a screen in Verden, Germany...

A cow stands with the cow photographer in front a screen in Verden, Germany...

A boy carrying his grand father for casting during the 4th phase of assembly elections...

A boy carrying his grand father for casting during the 4th phase of assembly elections...

NSUI activists participating in peace unity march at Delhi University in New Delhi...

NSUI activists participating in peace unity march at Delhi University in New Delhi...

A man dressed as Hindu Lord Shiva performs during a religious procession ahead of the Hindu...

A man dressed as Hindu Lord Shiva performs during a religious procession ahead of the Hindu...

An elderly woman with her goat at the parched bed of a pond in a village in Hubli district...

An elderly woman with her goat at the parched bed of a pond in a village in Hubli district...

An airplane carrying rejected asylum-seekers taxis to the take-off runway at the airport...

An airplane carrying rejected asylum-seekers taxis to the take-off runway at the airport...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523