Nifty corrects after RBI policy review, falls 2 per cent

Benchmark Nifty corrected sharply on heavy profit-booking across the counters to end well- below the key 7,700-level to 7,603.20, falling 155.60 points after the Reserve Bank of India (RBI) slashed interest by 0.25 per cent in policy review today.
The RBI announced its first bi-monthly policy review 2016-17 with slashing of repo rate to 25 basis points to 6.5 per cent amid host of measure in liquidity front, while marking no change in Cash Reserve Ratio.
The market which already priced 25 bps cut in repo rate turned weak as bearish sentiment crept in, as extensive profit-booking across the sectors led by key Banking, FMCG, PSU Banks, Pvt Banks, Auto and infra sectors drifted the index below 7,600-level to mark 7,588.65, before ending well-below the key 7,700-level.

Elsewhere, Asia market mostly ended red led by Japanese stocks led decline on uncertainty regarding the quantum and timing of interest rate hikes in the United States.
While, European shares fell led by lower German stocks after data of industrial orders in Europe's biggest economy unexpectedly dropped.
Sectorwise, PSU banks dipped 5.13 per cent, Banks dropped 3.06 per cent, Auto and PVT Bank slid 2.97 per cent, financials 2.27 per cent, Metal 2.65 per cent, FMCG 1.28 per cent and Realty 2.93 per cent. While the broader midcap and smallcap shares fell 2.27 and 2.15 per cent respectively.

The NSE 50-share index resumed lower at 7,736.30 and slid to 7,588.65 before concluding at 7,603.20, showing a sharp fall of 155.60 points or 2.01 per cent.

Stockwise, major losers were Adani Ports (6.72 per cent), ICICI Bank (5.51 per cent), SBIN (5.32 per cent), BhartiArtl (5.16 per cent), TataMtrDvr (5.02 per cent), Bank of Baroda (4.69 per cent), Tata Motors (4.61 per cent) and DLF (4.51 per cent).
A total of 1122 shares declined, while 435 gained and 51 ruled steady.
Turnover in cash segment jumped to Rs 16,425.27 crore from Rs 14,031.69 crore yesterday.
A total of 8,764.43 lakh shares changed hands in 71,51,143 trades. The market capitalisation of NSE stood at Rs 91,90,644 crore.