MARKET WRAP: Sensex ends 434 pts lower as RBI cuts GDP forecast; banks slip
All that happened in markets today.
 "Britain votes to leave EU, Cameron quits, markets rocked")
A 25 basis point (bps)-rate cut by the Reserve Bank of India (RBI) on Friday failed to cheer market participants as concerns over slowing economic growth dented investor sentiment. In its fourth bi-monthly monetary policy meet, the RBI's monetary policy committee (MPC) did cut the repo rate, as widely expected; however, a sharp reduction in the GDP growth forecast to 6.1 per cent for the financial year 2019-20 (FY20) caught investors off guard.
Benchmark indices, S&P BSE Sensex and NSE's Nifty50, lost over 1 per cent, thus taking their losing streak to the fifth consective session.
The S&P BSE Sensex dropped 434 points or 1.14 per cent to settle at 37,673.31. Financial stocks led the decline with HDFC Bank, ICICI Bank, and Axis Bank falling up to over 3 per cent.
On the NSE, the frontline index Nifty50 ended at 11,175, down 139 points or 1.23 per cent.
On a weekly basis, Sensex shed nearly 3 pe cent while Nifty50 lost 2.93 per cent.
On the sectoral front, Nifty Bank index slid nearly 700 points or 2.40 per cent to settle at 27,731.85 levels, with 10 out of 12 constituents ending in the red. Nifty IT index was the only sectoral index on the NSE that ended in the green. The Nifty IT index ended at 15,340.30, up 62 points or 0.41 per cent.
In the broader market, the S&P BSE MidCap index lost 131 points or 0.94 per cent to settle at 13,713.79 levels, while the S&P BSE SmallCap index closed at 12,809, down 102 points or 0.79 per cent.
GLOBAL MARKETS
Asian stocks edged up on Friday, thanks to gains on Wall Street, but signs of widening cracks in the global economy curbed risk appetite as markets looked to a key US job report that could determine whether the Federal Reserve cuts rates further. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent. Japan's Nikkei stock index rose 0.22 per cent, and Australian shares rose 0.54 per cent.
The pan-region Euro Stoxx 50 futures were up 0.44 per cent, German DAX futures 0.33 per cent higher and FTSE futures advanced 0.69 per cent.
In commodities, oil futures were higher ahead of the weekend but remained on track for large weekly losses on fears that slower global economic growth will hurt fuel demand.
(With inputs from Reuters)
3:47 PM
MARKET COMMENT :: Motilal Oswal, MD, Motilal Oswal Financial Services
RBI cut policy repo rates by 25 bps to 5.15%. The issue is, however, the transmission of these rates in the system. It is a dichotomy that the one who needs money does not get it, and the one who is offered does not need it!
Equity markets are cautious about the earnings season, which at this juncture looks less enthusiastic. There is a possibility that equity markets will trade cautiously and range-bound. In medium-to-long term. That said, there are good investment opportunities available.
3:42 PM
MARKET COMMENT :: Vinod Nair, head of research at Geojit Financial Services
Despite RBIs and Govt’s synchronized effort to offset a slowdown in the economy, investors have taken a pessimistic view due to continued downward revision in GDP estimate and new stress in the banking system. The Govt’s measures do have the potential to enhance consumption and spur investment but lag in transmission of cumulative rate cuts is adding a layer of complexity in the recovery
3:41 PM
Here's how Nifty Bank did today
3:40 PM
Nifty snapshot
3:39 PM
HDFC Bank, ICICI Bank contribute most to Sensex's fall today
(Image source: BSE)
3:38 PM
Sensex slides as financials drag
Banks pull index down; IT stocks stem fall
3:35 PM
CLOSING BELL
The S&P BSE Sensex slipped 434 points or 1.14 per cent to end at 37,673.31, while NSE's Nifty50 breached the crucial 11,200 level to close at 11,174.75, down 139 points or 1.23 per cent.
3:13 PM
NEWS ALERT | Fitch affirms Canara Bank's viability rating at BB- & PNB's At B
3:12 PM
BUZZING STOCK | Titan Co slumps around 4%
3:11 PM
Market check
2:57 PM
Q2 earnings: Top IT services companies likely to report steady growth
Top IT services companies are likely to report steady growth in earnings during the second quarter of the financial year though revenue increase on year-on-year is likely to take a hit owing to uncertainties in the macro environment. Though deal closures are likely to be affected compared to previous quarters, Infosys and HCL Technologies are expected to lead in revenue growth following the ramping up of some of their major outsourcing contracts. READ MORE
2:45 PM
RUPEE CHECK
(Source: Bloomberg)
2:42 PM
NEWS ALERT | Govt has also taken note of the higher inflation projection, which is within the RBI's median band of 3-4 per cent: Fin Min
2:41 PM
NEWS ALERT | Govt has taken note of the RBI's revised growth projection for GDP: Fin Min
Alert: RBI revised the FY20 GDP to 6.1% from 6.9% earlier
2:40 PM
NEWS ALERT | The RBI's measure to cut repo rate from 5.4% to 5.15% will complement govt's recent measures to accelerate growth: Fin Min
Union Finance Minister Nirmala Sitharaman
Topics : Markets MARKET WRAP
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First Published: Oct 04 2019 | 7:21 AM IST
