BSE Sensex plunged over 790 points after RBI announced it was sticking with the current repo rate of 6.50%, refusing to go with what was expected - a rate hike by 25 bps was on the cards. However, Governor Urjit Patel led RBI chose to stick with the status quo. Sensex fell as much as 792 points to close at 34,376 even as Nifty dropped under the 10,400 level. The Sensex has crashed over 930 points just before closing of the market. 

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The Nifty closed at 10,316, down by 282.80 points. 

Governor Patel has pulled off yet another surprise by sticking with the status quo today at the bi-monthly monetary policy review. According to the explanations provided, this decision of the Monetary Policy Committee (MPC) was based on on expectations of softening price rise. However, Patel has announced a change in RBI policy stance to "calibrated tightening", which was at "neutral" earlier. The resolution that was released stated, "The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 per cent on a durable basis."

Significantly, the MPC said that the petrol and diesel excise duty cut by the Modi government will help curb inflation.

The surprise stemmed from the fact that analysts had expected RBI to hike key rate by at least 25 bps from the current 6.50%. The reverse repo at which RBI absorbs excess funds is 6.25 per cent.

Zee Business Tweet: Check out the market closing status in a glance

Notably, MPC voted 5:1 in favour of a status quo. The voting for a 0.25 per cent hike was by Chetan Ghate. 

Sanjay Agarwal, Partner at TASS Advisors reacted by saying, "Retaining repo rate unchanged has fostered RBI agenda to control and retain inflation at projected level of 4 percent. Though it was expected that this time there may be some change in repo rate, but the committee decided not to change. A move likely to control inflation levels in near future."  

Top Gainers: PC Jeweller, Infosys, Bharti Infratel, Titan, Indiabulls Housing Finance 

Top Losers: HPCL, BPCL, Indian Oil, ONGC, United Brewerie, Bajaj Finance, Edelweiss Fin, Eicher Motors, Reliance Industries

Zee Business Tweet: Big developments at 4PM

The key domestic equity indices has today opened in the red as the S&P BSE Sensex dropped nearly 280 points and the NSE Nifty50 traded below the 10,600-mark.

Index-wise, the Sensex opened at 35,097.99 points from its previous close of 35,169.16 points on Thursday.

At 9.20 a.m., it traded at 34,887.23 points down by 281.93 points or 0.80 per cent.

Similarly, the Nifty50 of the National Stock Exchange (NSE) opened at 10,514.10 points after closing at 10,599.25 points. It traded at 10,530.45 points during the morning trade session, down 68.80 points and 0.65 per cent.