Equity indices fall despite RBI cutting lending rates

Sensex

Despite the RBI’s decision to reduce key lending rates, negative global cues, along with profit booking depressed the Indian equity markets which closed in the red on Wednesday.

The Reserve Bank of India in its third bi-monthly monetary policy review of 2017-18 announced that the repurchase rate, or the short-term lending rate for commercial banks on loans taken from it, stands lowered to 6 per cent from 6.25 per cent.

Besides, broadly negative European markets and heavy selling pressure in capital goods, IT and FMCG stocks subdued investors’ sentiments.

The wider Nifty50 of the National Stock Exchange (NSE) fell by 33.15 points, or 0.33 per cent, to provisionally close at 10,081.50 points (at 3.30 p.m.).

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,641.58 points, closed at 32476.74 points — down 98.43 points, or 0.30 per cent, from its previous close at 32,575.17 points.

The BSE market breadth was bearish with 1,595 declines and 1,063 advances.

In the early morning session, the key equity indices opened on a higher note and surged to new intra-day highs. The NSE Nifty50 scaled a fresh intra-day high of 10,137.85 points and the BSE Sensex of 32,686.48 points.

On Tuesday, the key Indian equity indices closed at fresh highs on the back of healthy quarterly results from corporates as well as July automobile results.

The NSE Nifty50 closed above the psychologically important 10,100-mark for the first time — at 10,114.65 points — while the Sensex closed at a fresh high of 32,575.17 points.

IANS