Business Standard

RBI chief comment jolts market; Nifty tanks 55 pts, RIL shines

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Press Trust of India Mumbai

Market players were expecting the Central bank to cut key interest rates at its policy review meeting on January 29. However, RBI Governor D Subbarao's overnight statement that there was no room for fiscal and monetary stimulus given the "still high" inflation dampened the overall mood.

Plunging industrial growth amid lower headline inflation, which fell to a three-year low in December, had raised hopes for a rate cut.

After a weak opening on the back of modest profit- taking and sluggish global cues, the benchmark mostly traded in a tight range due to lack of triggers. The lacklustre market suddenly turned bearish in late afternoon and witnessed frantic selling after the recent rally, which saw the Nifty scaling multi-year peaks.

 

Financials, auto, metal, FMCG and infra were the worst hit counters. Small and mid-cap stocks too received pounding. But oil&gas sector ended in green led by Reliance Industries.

Globally, Asian markets ended lower, pressured by Nikkei index which plunged more than 2.6 per cent from the previous session's 32-month closing high as the yen firmed against the US dollar.

The 50-share Nifty plunged to a low of 5,992.05 before ending at 6,001.85, showing a steep fall of 54.75 points, or 0.90 per cent, over the last close.

Hindalco, Reliance Infra, JP Associates, Tata Motors, Jindal Steel, M&M, Maruti, IDFC, SBI and Tata Steel were the top Nifty losers. The notable gainers included Reliance, HCL Tech, Dr Reddy's, Power Grid, TCS, Ranbaxy and NTPC.

Turnover in cash segment dropped to Rs 12,788.38 crore from Rs 13,022.83 crore yesterday. A total of 7,192.11 lakh shares changed hands in 59,08,175 trades. The market capitalisation stood at Rs 68,69,924 crore.

  

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First Published: Sep 29 2010 | 5:37 PM IST

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