Sensex closes 47 points down after RBIs policy decision

Posted April 07, 2017

Rate sensitive stocks such as banks, real estate stocks rallied after the Monetary Policy Committee (MPC) chose to keep the policy rates and cash reserve ratio (CRR) unchanged.

Indian equity markets on Thursday closed on a flat-to-negative note after the Reserve Bank of India (RBI) kept its interest rates unchanged in its first bi-monthly Monetary Policy Review of the 2017-18 fiscal, which failed to uplift investors' sentiments. As the central bank, in an unusual move, raised the reverse repo rate by 25 basis points and cut the marginal standing facility rate, it also said it will use liquidity tools other than specified to manage the excess liquidity.

The BSE Sensex breached 30,000-mark and the NSE Nifty hit a lifetime high of 9,264.95 in opening trade on Wednesday on sustained buying by retail investors amid increased foreign fund inflows and positive Asian cues.

"Q4 numbers should take centre-stage from here on, but global cues could also hold sway in the coming days, specially with US markets beginning to show vulnerability ahead of (US) NFP (non-farm payroll) jobs data".

The Sensex was up by 64.02 points or 0.21 per cent at the Wednesday's closing.

RIL too was higher by 0.71 per cent at Rs 1,424.95. Among BSE sectoral indices, FMCG slumped 0.79%, followed by consumer durables (0.64%), healthcare (0.63%), capital goods (0.21%), bank (0.21%) and auto (0.08%).

In contrast, the BSE market breadth was marginally bullish - with 1,476 advances and 1,403 declines.

However, due to profit-taking at record levels, it shed some ground to close at 9,265.15, up by 27.30 points or 0.30 per cent.

The Nikkei Composite Purchasing Managers' Index rose to 52.3 in March from 50.7 in February.

The rupee also staged a stellar comeback after a brief pause and hit a fresh 17-month peak of 64.87 by gaining 16 paise against the United States dollar on heavy selling of the American currency by banks and exporters.