Sensex Slides Following RBI’s GDP Guidance

Benchmark indices fell sharply in trade today, despite the Reserve Bank of India delivering on a 25 basis points cut and presenting an accommodative stance. While initially the markets traded for a brief period in the green following the RBI policy, it gave-up gains later.

The Sensex ended the day lower by 433 points, while the Nifty ended lower by 139 points. Leading the set of losers in trade were Ultratech Cement, Titan Company and Kotak Mahindra Bank.

Zee Entertainment, which had a solid day on Thursday, was among the top 5 losers on the Nifty. However, heavyweight HDFC Bank which fell more than 2 per cent in trade was pulling down the indices because of its heavyweight in the index.

Shares of Just Dial was among the major losers in trade, dropping as much as 7 per cent. This is the second straight day that the stock has seen sharp losses.

Some of the banking stocks saw huge selling pressure, especially the private sector lenders like Federal Bank, Kotak Mahindra Bank, HDFC Bank and ICICI Bank.

The market breadth was tilted in favour of sellers with 1,100 stocks decling, while 580 stocks gained ground.

Meanwhile, European markets were trading flat, while most of Asia ended the day mixed.

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