Sensex crashes 286 points, Nifty tanks 92 points, Bank Nifty dips 359 points; DHFL, Indiabulls Real Estate, Tata Steel stocks bleed
The current selloff has been triggered by the RBI MPC lowering the FY20 GDP forecast from 7 per cent to 6.9 per cent, say stock market experts.
The stock market of India witnessed heavy selloff post-RBI monetary policy committee announcements. The BSE Sensex crashed 286 points and closed at 36,690 levels while the 50-stock Nifty dipped 92 points and closed at 10,855 levels. The Bank Nifty index nosedived 320 points and closed at 27,702 levels. Jammu & Kashmir Bank, Central Bank, Take Solutions, ITI and Ashoka Buildcon stocks among the top gaining shares while Indiabulls Real Estate, Indiabulls Housing Finance, DHFL, Parag Milk Foods and Jindal Steel and Power stocks were the top losing shares in the intraday trade.
Speaking on the current market trend Prakash Pandey, Head of Research at Fairwealth Securities said, "The current selloff has been triggered by the RBI MPC lowering the FY20 GDP forecast from 7 per cent to 6.9 per cent. The market was expecting 50 bps rate cut and hence some downside in the market can be attributed to the 35 bps rate cut as well. But, overall the market doesn't look further downside and its current support of 10,750 is expected to remain intact."
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Metal stocks witnessed the maximum beating as the BSE Metal index went down over 2.5 per cent in the intraday trade. Metal major Jindal Steel & Power share price crashed over 10 per cent, shares of Tata Steel dipped 4.65 per cent, Vedanta counter went off 3.19 per cent, Steel Authority of India (SAIL) went down 3.95 per cent, National Aluminium Company or NALCO counter cooled down around 2.5 per cent while JSW Steel dipped near 2.5 per cent.
Auto stocks also witnessed weak trade as the BSE Auto index went down 2.1 per cent in the intraday trade. Auto major Mahindra & Mahindra share price crashed 6 per cent, shares of Motherson Sumi Systems dipped 5.47 per cent, Tata Motors stocks slipped 4.5 per cent, Eicher Motors scrip went down 3.4 per cent, Cummins India counter went off 2.8 per cent, Bosch stocks went southward near 4 per cent while Ashok Leyland scrip went down near 3 per cent.
Among Asian markets, the Japanese Nikkei 225 index dipped 0.33 per cent, South Korean Kospi went down 0.41 per cent, Hang Seng ticked 0.08 per cent higher while Shanghai market went southward 0.32 per cent.
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