Indices post biggest 1-day decline in 2019 despite RBI's dovish stance

The RBI's stance failed to cheer investors as the looming crisis in the non-banking financial companies (NBFC) sector overshadowed the move

The benchmark indices posted their biggest single-day decline of 2019, even as the Reserve Bank of India (RBI) lowered policy rates by 25 basis points (bps) — a move that was widely expected. 

The central bank cut rates for a third time this year, and kept the option open for further easing to boost growth. 

The RBI’s dovish stance failed to cheer investors as the looming crisis in the non-banking financial companies (NBFC) sector overshadowed the move. 

Most investors were hoping that the central bank would announce some measures to help alleviate the crisis in the NBFC sector.

The Sensex