ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Stock Market Outlook: Our dependence on US market limited now, next 10-15 years belong to India, says Anil Singhvi | Here's why
  • Toyota Hyryder Unveiled: Toyota India unveils new self-charging hybrid electric SUV in India; check details
  • Virtual Digital Assets: VDAs to attract 1% TDS from today; know what CBDT says about new norms
  • Gold Price Today: Yellow metal surges by over Rs 1000 as excise duty hiked to 12.5% - check gold rate in your city
  • Monsoon session of Parliament to begin on July 18; to end on August 12
Read in App
Business News » India News

RBI cuts repo rate by 25bps, here is how Sensex, Nifty reacted; Asian Paints, Coal India, HUL top gainers

Following the RBI repo rate cut announcement, there was heavy selling pressure witnessed on Sensex and Nifty 50.   

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
RBI cuts repo rate by 25bps, here is how Sensex, Nifty reacted; Asian Paints, Coal India, HUL top gainers
The Reserve Bank of India (RBI), as expected, slashed policy repo rate by another 25 basis points, taking it down to 5.75%. Photo: Reuters

The Reserve Bank of India (RBI), as expected, slashed policy repo rate by another 25 basis points, taking it down to 5.75%. Following the announcement, there was heavy selling pressure witnessed in Sensex and Nifty 50 and they both dropped by 160 points and 70 points respectively within few minutes of the announcement. At around 1203 hours, Sensex was trading at 39,979.63 down by 115.28 points or 0.29%. On other hand, the 51-scrip index was trading at 11,971.75 below 49.90 points or 0.42%. 

Among major stocks that took a beating on Sensex post RBI policy were - IndusInd Bank at Rs 1,585.45 per piece down by 3.10%, followed by Vedanta at Rs 163.05 per piece below 1.72%, Yes Bank at Rs 150.25 per piece down 1.64%, L&T at Rs 1,549 per piece down 1.34%, Tata Steel at Rs 490.60 per piece below 1.32%. 

Other stocks that tumbled were M&M, Reliance Industries, Sun Pharma, TCS, ICICI Bank, Bharti Airtel, Bajaj Finance, SBI, ITC, Tata Motors, Kotak Bank, HDFC, Hero Motocorp and HDFC Bank in the range of 0.04% to over 1%. 

Meanwhile, gainers on Sensex were stocks like Asian Paints at Rs 1,447.40 per piece above 1.84%, followed by Coal India at Rs 267.30 per piece up 1.54%, HUL at Rs 1,843 per piece up 1.48%, Power Grid at Rs 195.60 per piece up 1.29% and HCL Tech at Rs 1,090.65 per piece up 0.75%. Other stocks were Infosys, NTPC, ONGC, Maruti Suzuki and Bajaj Auto who also saw marginal gains. 

Amit Gupta, Co-Founder, and CEO, TradingBells states, “RBI has announced a rate cut of 25 basis points fueled by a stable government, sharp decline in crude oil prices and a slowdown in the economy. RBI changed its stance to accommodative and a possibility of further rate cuts this year remains open (we can expect a further rate cut of 50 to 75 basis points in 2019). Real estate, NBFC,  Banking, and Auto sectors would be the key beneficiaries of this rate cut where a temporary uptick can be seen in many stocks but quality stocks will continue to outperform”.

Meanwhile, Romesh Tiwari, Head of Research, CapitalAim, comments, "25 basis point cut is inline with our minimum expectation and was already discounted in the market. The downward revision of GDP growth reflects concern over slowdown and supports shifting of RBI stance to accommodating policy. We expect banking shares to remain strong in the midterm while NBFCs may further correct before consolidating. Largely market will not be driven by this news. Current valuations do not justify Nifty and Sensex and are due for a correction soon. Now all the eyes will be on the Budget session which may bring some big measures for revitalizing the economy. Short term target for Nifty is 11,880 and breaking below that may take the Nifty 11,660 levels in the medium term."

Now repo rate under  the liquidity adjustment facility (LAF) by 25 basis points to 5.75 per cent from 6.0 per cent with immediate effect. In last 3 monetary policies, overall 75 basis point cut has been made in repo rate. Consequently, the reverse repo rate under the LAF stands adjusted to 5.50 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0 per cent. 

However, the  MPC also decided to change the stance of monetary policy from neutral to accommodative. 

Against this backdrop, all members of the MPC (Dr. Chetan Ghate, Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Dr. Viral V. Acharya and Shri Shaktikanta Das) unanimously decided to reduce the policy repo rate by 25 basis and change the stance of monetary policy from neutral to accommodative. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
SensexNiftyRBI Monetary policyStocks in Focusrbi rate cutShaktikanta DasMPC members
Written By: ZeeBiz WebTeam
Updated: Thu, Jun 06, 2019
01:09 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Closing Bell: Sensex down 150 points, Nifty below 15800 – IT, FMCG, Bank stocks drag most Closing Bell: Sensex down 150 points, Nifty below 15800 – IT, FMCG, Bank stocks drag most
Closing Bell: Markets extend gain for 4th session in a row; Sensex up 16 points, Nifty50 at 15850 – Auto and Metals surge most Closing Bell: Markets extend gain for 4th session in a row; Sensex up 16 points, Nifty50 at 15850 – Auto and Metals surge most
Closing Bell: Markets extend gain for 3rd day in row; Sensex up over 400 points, Nifty above 15800 – IT and Metals gain most Closing Bell: Markets extend gain for 3rd day in row; Sensex up over 400 points, Nifty above 15800 – IT and Metals gain most
Closing Bell: Market sheds 2-day gaining streak as Sensex sees 700 points fall, Nifty50 settles over 200 points lower Closing Bell: Market sheds 2-day gaining streak as Sensex sees 700 points fall, Nifty50 settles over 200 points lower
Closing Bell: Markets extend gain for 2nd day; Sensex up over 900 points, Nifty50 above 15600 – Metal and IT lead the surge Closing Bell: Markets extend gain for 2nd day; Sensex up over 900 points, Nifty50 above 15600 – Metal and IT lead the surge

LATEST NEWS

Toyota India set to unveil Toyota Hyryder tomorrow, Check details here

Closing Bell: Nifty, Sensex pare losses to end flat; oil & gas biggest loser, FMCG top gainer

PAN-Aadhaar Link: Don't know if your PAN linked with Aadhaar? Check steps here now or else pay double penalty from July 1

EXCLUSIVE: Start investing in large-cap stocks, Invest in IT, Auto, Capital Goods, and Private Bank stocks says the market expert

Crisil cuts FY23 GDP growth estimate to 7.3%

Buy, Sell or Hold: What should investors do with Delta Corp, Dhani Services and Amber Enterprises?

OnePlus Nord 2T 5G India launch today: Check expected price, specifications and more

Gold Price Today: Yellow metal surges by over Rs 1000 as excise duty hiked to 12.5% - check gold rate in your city

OnePlus Nord 2T 5G price in India starts at Rs 28,999 - Check offers, availability and specifications

Oil India Limited completes beta demo of hydrogen powered bus developed under its Startup programme SNEH

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV