Closing Bell: RBI rate cut fails to cheer Sensex, Nifty; L&T Infotech, Rolta India, RIL stocks bleed
The correction is caused by profit booking after the successive rally at the Indian indices. Experts are advising investors to adopt buy on dips strategy.
On account of heavy profit booking, the Indian indices fail to sustain the gain it had after the RBI Monetary Policy review decision was out. The BSE Sensex lost 192 points before closing at 38,684 levels while the 50-stock NIfty lost 45 points after closing at 11,598. The Nifty Bank too failed to cheer the RBI's Repo Rate cut decision as the index lost 188 points after closing at 29,904 levels.
Speaking on the current market scenario SEBI registered technical analyst Simi Bhaumik told Zee Business online, "Overall the market is bullish. The correction is caused by profit booking after the successive rally at the Indian indices. Indian market is currently trading in the range of 11,600 to 11,760. The investors should adopt buy on dips strategy till any side of the range is breached."
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IT, energy, tech, oil and gas stocks led the bear run on the Dalal Street. The BSE IT index bleed maximum by loosing around 1.4 per cent from its previous close. IT major Rolta India lost around 3.85 per cent, MIC Electronics shares went off near 4.35 per cent, Matrimony.com scrip lost around 3.9 per cent, Larsen & Toubro Infotech counter went down 1.78 per cent while Wipro and Infosys corrected around 0.9 per cent.
Following IT index closely, the BSE Energy index lost near 1.2 per cent in the intraday trade. Energy major and Sensex heavyweight Reliance Industries or RIL lost over 1.5 per cent, BPCL counter went off more than 2.5 per cent, Petronet LNG scrip crashed over 2 per cent, Oil India stock went down near 1.3 per cent while Castrol India counter went off 0.9 per cent.
Oil and gas major GAIL lost over 1.5 per cent while HPCL went down more than half per cent. Among Tech stock Vodafone Idea crashed near 4.7 per cent, TCS lost near 3 per cent, Reliance Communications counter went down 4.74 per cent, Just Dial scrip went off 2.25 per cent while HCL Technologies crashed around 2.3 per cent.
Asian stocks too had a sideways trade today, Japanese Nikkei 225 index went down 0.01 per cent, South Korean Kospi added 0.15 per cent, Hang Seng nudged near 0.1 per cent higher while the Shanghai index rose near 0.97 per cent.