Mumbai: Key indices ended in the red Tuesday after an intra-day spurt on policy rate cuts by the Reserve Bank of India. The weak closing shows that the market had already factored in a 25 basis point-cut in the repo, the rate at which RBI lends to banks.
The Sensex closed at 19990.90, down 112.45 points after touching 20,203.66 earlier in the day. The Nifty closed at 6049.90, down 24.90 points after touching a high of 6,111.80 intra-day.
The central bank trimmed the economic growth projection for the current fiscal to 5.5 per cent, from 5.8 per cent estimated earlier and said it was necessary to arrest the decline in growth as inflation risks moderate. The market failed to cheer at the RBI's decision to reducing key interest rates by 0.25 per cent and releasing Rs 18,000 crore additional liquidity into the financial system.
Besides banking stocks, the two index heavyweight with their nearly 17 per cent weightage, Reliance Industries and Infosys, fell by 1.68 per cent to Rs 882.55 and 0.54 per cent to Rs 2,795, respectively. Among the lenders, State Bank of India fell by 1.32 per cent to Rs 2,357.30, HDFC Bank by 2.54 per cent to Rs 653, Bank of India 4.01 per cent to Rs 341, Bank of Baroda by 2.64 per cent to Rs 847.15, Canara Bank by 2.23 per cent to Rs 471.80, Yes Bank by 1.92 per cent to Rs 512.25 and Punjab National Bank by 1.45 per cent to Rs 859.30.
The interest-sensitive realty sector index suffered the most by losing 2.07 per cent to 2,177.77 followed by Oil and Gas index by 1.35 per cent to 9,299.47. Auto index lost 1.12 percent to 11,059.84, while Bank index fell by 0.51 per cent to 14,589.39.