INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Stock barometer Sensex came down by nearly 200 points on Thursday after the RBI led by Governor Shaktikanta Das decided to lower
GDP growth outlook for 2019-20.
In its first bi-monthly policy review of this financial year, the six-member monetary policy committee (MPC)
slashed the repo rate by 25 basis points, which was along the expected lines
What caught investors off-guard, however, was the downward revision in GDP growth to 7.2 per cent from the earlier 7.4 per cent.
Concerns
over a likely poor monsoon swirled, along with a sharp depreciation in the rupee against the dollar
The domestic currency tanked as much as 71 paise
According to a Reuters poll, the rupee might take a further blow if the central bank continues with policy easing
While India grappled with the developments on the home front, the global markets did not paint a rosy picture either
Dire data from Germany and fresh concerns about US-China trade talks weighed on European and Asian markets
Tech charts signal that markets are in an overbought zone and investors are booking profits at even the slightest sign of trouble
BSE's Sensex ended lower by 192 points, or 0.49 per cent, at 38,685 while NSE Nifty settled at 11,598, down 50 points, or 0.39 per cent
The advance-decline ratio on the BSE stood at around 2:3.
Let's check out today's market bulletin.Losses in RIL, technology and bank
shares cast a shadow on benchmark indices
Out of Sensex's 30 shares, 13 advanced and 17 declined
Tata Motors with a rise of 2.49 per cent was the best-performing stock
Meanwhile, TCS with a fall of 3.17 per cent declined the most
HCL Tech, YES Bank, IndusInd Bank, RIL and Kotak Mahindra Bank were among other stocks that declined the most.
Mid and smallcap indices
However, they fared better than the benchmark Sensex
The midcap index slipped 0.14 per cent and the smallcap index 0.32 per cent.
IT, energy, technology and oil gas were the worst performing
sectors on the BSE, shedding over 1 per cent each
Healthcare and auto posted highest gains.
Turning to factorsDownward GDP revisionThe Reserve Bank of India revised the GDP growth downward
to 7.2 per cent, saying there are signs of domestic investment activity weakening as reflected in a slowdown in production and imports of
Global markets diveEuropean and Asian shares stepped back from their eight-month highs on Thursday, as investors took money off the table
amid fresh concerns about US-China trade talks, Reuters said.
Germany's figures showed industrial orders fell at their sharpest rate in
more than two years in February, driven largely by a slump in foreign demand
MSCI's broadest index of Asia shares also lost 0.4 per cent overnight after five straight days of gains had taken it to the highest level
since late August.
Rupee losses spiralThe rupee lost its balance on Thursday against the dollar after the RBI cut the repo rate, hitting a
low of 69.13 during the day.
Expert TakeVinod Nair, Head of Research, Geojit Financial Services
"Market consolidated as the outcome from RBI
monetary policy was in line with expectations Investors turned cautious about the downward revision in GDP growth to 7.2 per cent for FY20
while premium valuation and concerns over monsoon further impacted sentiment
However, dovish view by global central banks and likely better results in Q4 FY19 can stabilise the market in the near future."
