markets

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	A 35-basis point (bps) rate cut by the Reserve Bank of India (RBI) failed to lift the investor sentiment on Wednesday as the benchmark indices ended in the red.</div>
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	The S&P BSE Sensex lost 286 points or 0.77 per cent to settle at 36,690.50, with HUL being the top gainer and M&M the biggest loser. The broader Nifty50 index ended the session at 10,855.50, down 93 points or 0.85 per cent.&nbsp;</div>
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	On the sectoral front, rate-sensitive stocks took the biggest knock with Nifty Bank, Nifty Auto and Nifty Realty slipping 1 per cent to 2 per cent.&nbsp; Volatility gauge, India VIX climbed nearly 5 per cent to 16.88 levels.&nbsp;</div>
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	The broader market fared better than the benchmark indexes. The S&P BSE MidCap index slipped 60 points, or 0.44 per cent, to 13,509, while the S&P BSE SmallCap index ended at 12,482 level, down 14 points or 0.11 per cent.</div>
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	<strong>RBI POLICY</strong></div>
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	The Reserve Bank of India&#39;s (RBI&#39;s) monetary policy committee (MPC) on Wednesday decided to reduce the repo rate by 35 basis points (bps) to 5.40 per cent to help revive the economy. It was the fourth straight rate cut by the central bank in 2019. Consequently, the reverse repo rate now stands at 5.15 per cent. <a href="https://www.business-standard.com/article/markets/why-rbi-slashed-rate-by-35-bps-instead-of-25-or-50-bps-top-highlights-119080700595_1.html" target="_blank"><strong>Click to read key highlights</strong></a></div>
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	<strong>BUZZING STOCKS</strong></div>
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	Shares of Mahindra & Mahindra (M&M) hit an over five-year low on the BSE in intra-day trade on Wednesday after the company reported a 26 per cent decline in its consolidated net profit before exceptional items at Rs 918 crore for June quarter (Q1FY20). The stock eventually settled at Rs 518.45, down nearly 6 per cent. <strong><a href="https://www.business-standard.com/article/pti-stories/m-m-consolidated-pat-falls-52-6-pc-to-rs-894-cr-in-june-quarter-119080700690_1.html" target="_blank">READ MORE</a></strong><br />
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	Shares of Titan Company hit a six-month low of Rs 999, down 4 per cent intra-day on the BSE on Wednesday after it reported 6 per cent year-on-year (YoY) growth in standalone net profit at Rs 371 crore in the June quarter (Q1FY20), due to lower-than-expected revenue. The firm had posted a profit of Rs 349 crore in the year-ago quarter.</div>
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	<strong>GLOBAL CUES</strong></div>
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	A cautious calm returned to stock markets on Wednesday as softer rhetoric from Washington on the US-China trade war soothed investors. MSCI&rsquo;s broadest index of Asia-Pacific shares outside Japan was slightly lower. Also easing the mood were signs that China is intervening to steady the yuan after its recent sharp fall, allaying investor fears of a global currency war.</div>

MARKET WRAP: Sensex dips 286 pts, Nifty ends at 10,856 despite RBI rate cut

Business Standard

MARKET WRAP: Sensex dips 286 pts, Nifty ends at 10,856 despite RBI rate cut | News on Markets - Business Standard

4 factors guiding inflation projection: RBI

<strong>First,</strong> the uptick in food inflation may be sustained by price pressures in vegetables and pulses as more recent data suggest. Uneven spatial and temporal distribution of monsoon could exert some upward pressure on food items, though this risk is likely to be mitigated by the recent catch up in rainfall.<br />
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<strong>Second,</strong> despite excess supply conditions, crude oil prices may likely remain volatile due to geo-political tensions in the Middle-East.<br />
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<strong>Third,</strong> the outlook for CPI inflation excluding food and fuel remains soft. Manufacturing firms participating in the industrial outlook survey expect output prices to ease in Q2.<br />
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<strong>Fourth,</strong> one year ahead inflation expectations of households polled by the Reserve Bank have moderated.<br />
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Taking into consideration these factors and the impact of recent policy rate cuts, the path of CPI inflation is projected at 3.1 per cent for Q2:2019-20 and 3.5-3.7 per cent for H2:2019-20, with risks evenly balanced. CPI inflation for Q1:2020-21 is projected at 3.6 per cent

<strong>(Source: RBI release)</strong><br />
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https://bsmedia.business-standard.com/_media/bs/img/live-blog/full/15651613704471.jpg

<strong>(Source: RBI release)</strong><br />
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https://bsmedia.business-standard.com/_media/bs/img/live-blog/full/15651613537877.jpg

NEWS ALERT | System is flushed with liquidity: RBI Governor

NEWS ALERT | Construction activity has weakened in India: RBI Governor

-- Inflation ex-food and fuel remain unchanged<br />

NEWS ALERT | Financial markets have turned volatile on the back of geopolitical concerns: RBI Governor

I think the credit flow will now revive.. and the growth numbers will pick up: RBI Governor

NEWS ALERT | FY20 CPI risk evenly balanced: RBI

Reducing policy rate by 50 bps might be excessive, especially after taking into accounts actions already taken by RBI: RBI Governor

There is rising downside risk to global growth: RBI

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	-- Central banks across the world are lowing interest rates</div>
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	-- Inflation remains benign across countries</div>

Risk weight for consumer credit reduced to 100% from 125%: RBI

Gold prices have risen due to safe-haven demand: RBI

Domestic economic activity continues to be weak, with the global slowdown and escalating trade tensions posing downside risks: RBI

NEWS ALERT | All MPC members unanimously voted to reduce the policy repo rate and to maintain the accommodative stance: RBI

NEWS ALERT | 35 bps was seen as a balanced level of cut under the circumstances: RBI Governor