Sensex, Nifty extend losses on global cues, banking stocks
The weak run of equity markets continued on the second consecutive day on Thursday with key indices Sensex and Nifty registering losses 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 closed lower by 238.86 points, or 0.74 per cent, at 32,237.88. Sectoral indices bank, FMCG, metal, power, realty, capital goods and IT slumped. Stocks of banking majors like Axis Bank, ICICI Bank and State Bank of India were among the top losers on the BSE.
The wider Nifty of the National Stock Exchange (NSE) fell by 67.85 points, or 0.67 per cent, to close at 10,013.65 points.
According to market observers, RBI's decision to reduce key lending rates could not lift investors' sentiments. The Reserve Bank of India in its third bi-monthly monetary policy review of 2017-18 on Wednesday lowered the repurchase and reverse repurchase rate by 25 basis points. The Reserve Bank's decision to lower the benchmark rate to 6 per cent yesterday was already priced in, which is why there is nothing to cheer, dealers said.
"The benchmark indices opened lower tracking muted trend seen in Asian markets as investors locked in recent gains after Wall Street's Dow Jones Industrial Average broke the 22,000 barrier for the first time in its 121-year history. Back home, investors were disappointed with just 25 bps rate cut by RBI as it was already priced in, believe experts," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
The rupee, which strengthened further against the dollar to trade at a fresh two-year high of 63.65, failed to enthuse sentiment.
On Wednesday, the benchmark indices were pulled lower to close on a subdued note on the back of broadly negative European markets and profit booking.
The Nifty fell by 33.15 points, or 0.33 per cent, to close at 10,081.50 points, while the Sensex closed at 32,476.74 points -- down 98.43 points, or 0.30 per cent.