 "Markets slump post RBI policy review")
After a period of consolidation in early trades markets slumped after the RBI failed to meet market expectation of easing of liquidity and announced sharp cut in MSF (Marginal Standing Facility) rate by 75 basis points to 9.5% with financials leading the decline. The repo rate has been increased by 25 basis points 7.5%.
By 11:10AM, the Sensex was lower by 415 points at 20,233 mark and the Nifty declined 142 points at 5,974. The Sensex was trading 39 points down at 20,607 and the Nifty wsa down 7 points at 6,109 just before the monetary policy announcement.
The new Reserve Bank of India chief Raghuram Rajan announced his first monetary policy statement today and said that high inflation is a cause for concern.
In Asia, most markets were closed for mid-autumn holiday. Investors in the Asia-Pacific region remained cautious over the U.S. Federal Reserve's policy outlook, a day after the world's most powerful central bank triggered a global rally in riskier asset markets with an unexpected decision to maintain its stimulus program. The Nikkei was marginally down 0.2%.
Back home, the rupee extended losses post the Reserve Bank of India's monetary policy review.
The rupee was trading 62.31 post the policy announcement compared to yesterday's closing level of 61.77/dollar.
On the sectoral front, BSE Bankex was the top loser down nearly 5% followed by capital goods, rate sensitives and metal indices. However, BSE IT and TECk were the only gainers
In the financial space, ICICI Bank, HDFC Bank, SBI and HDFC were down 2.5-4.5% each. Other Sensex losers include, L&T, ITC, ONGC and HIndustan Unilever.
TCS, Sun Pharma and Wipro were among the Sensex gainers.
The market breadth on BSE turned negative with 581 gainers and 1134 losers.
By 11:10AM, the Sensex was lower by 415 points at 20,233 mark and the Nifty declined 142 points at 5,974. The Sensex was trading 39 points down at 20,607 and the Nifty wsa down 7 points at 6,109 just before the monetary policy announcement.
The new Reserve Bank of India chief Raghuram Rajan announced his first monetary policy statement today and said that high inflation is a cause for concern.
In Asia, most markets were closed for mid-autumn holiday. Investors in the Asia-Pacific region remained cautious over the U.S. Federal Reserve's policy outlook, a day after the world's most powerful central bank triggered a global rally in riskier asset markets with an unexpected decision to maintain its stimulus program. The Nikkei was marginally down 0.2%.
Back home, the rupee extended losses post the Reserve Bank of India's monetary policy review.
The rupee was trading 62.31 post the policy announcement compared to yesterday's closing level of 61.77/dollar.
On the sectoral front, BSE Bankex was the top loser down nearly 5% followed by capital goods, rate sensitives and metal indices. However, BSE IT and TECk were the only gainers
In the financial space, ICICI Bank, HDFC Bank, SBI and HDFC were down 2.5-4.5% each. Other Sensex losers include, L&T, ITC, ONGC and HIndustan Unilever.
TCS, Sun Pharma and Wipro were among the Sensex gainers.
The market breadth on BSE turned negative with 581 gainers and 1134 losers.