Domestic equity benchmark (S&P BSE Sensex and NSE Nifty 50) indexes extended losses after Reserve Bank of India (RBI) announced a reduction in repo rate by 25 basis points or 0.25 per cent to 6 per cent. Repo rate is the key interest rate at which the RBI lends short-term funds to commercial banks. According to analysts, some investors had expected RBI to cut repo rate by 50 basis points. The latest policy statement comes after the first bi-monthly review meeting of financial year 2019-20 by the Monetary Policy Committee which began on April 2.
By afternoon, the S&P BSE Sensex fell as much as 160.45 points to touch 38,716.67, while the Nifty50 barometer of the National Stock Exchange (NSE) declined by 46.95 points to hit 11,597.00. The losses on Dalal Street were led by buying in IT and metal stocks. Heavyweights
Reliance Industries, TCS, Infosys, HCL Tech and IndusInd Bank contributed the most to the drags on Sensex.
At 12:13 pm, the 30-share benchmark index traded 105.83 points or 0.27 per cent lower at 38,771.29, and the Nifty was at 11,607.40, down 36.55 points or 0.31 per cent from the previous close.
Top laggards on the 50-scrip index were Hindalco, HCL Tech, Yes Bank, BPCL and GAIL, trading between 1.32 per cent and 2.48 per cent lower. The Nifty IT index and metal index were trading 0.88 per cent and 0.48 higher respectively at that time.
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