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Rate cut fails to lift spirits, Sensex, Nifty turn sluggish on weak Asian shares

The Reserve Bank's decision to lower the benchmark rate by 25 bps to 6 per cent yesterday was already priced in, which is why there is nothing to cheer, dealers said
Reported by: PTI Mumbai August 03, 2017 11:36 IST
PTI

Key equity indices Sensex and Nifty registered losses at the open today on account of lower exposure by investors as the RBI's 25 bps rate reduction did little to lift spirits amid a weak Asian trade.

The 30-share index was lower by 78.64 points, or 0.24 per cent, at 32,398.10. The gauge had lost 98 points yesterday.

Sectoral indices bank, FMCG, metal, power, realty, capital goods and IT slumped.

The Reserve Bank's decision to lower the benchmark rate by 25 bps to 6 per cent yesterday was already priced in, which is why there is nothing to cheer, dealers said.

The National Stock Exchange Nifty also fell by 23.25 points, or 0.23 per cent, to 10,058.25.

The rupee, which strengthened further against the dollar to trade at a fresh two-year high of 63.65, failed to enthuse sentiment.

Laggards included Kotak Bank, Asian Paints, SBI, ONGC, Adani Ports and Axis Bank.

Other Asian markets trended down in the beginning.

The US Dow Jones Industrial Average ended above the 22,000 for the first time yesterday, propelled by strong corporate earnings.