Nifty, Sensex Fall After Banks Tumble On RBI Policy Decision: Midday Market Update
At 12:06 p.m., Nifty falls 0.62%, while the Sensex declines 0.66%
India's benchmark stock erased all early gains to trade lower on Thursday, led by losses in banking stocks after the RBI did not announce any new measures to address liquidity issues in its monetary policy.
Adding to the selling pressure was RBI Governor Shaktikanta Das comments that banks will have to tell borrowers the entire cost of a loan, including fees and other charges, to enhance transparency.
"Two surprises from the hawkish commentary include the key fact statement on loans, which might hurt margins, and that the liquidity issues were not addressed," said Ajay Bagga, a market veteran.
As of 12:06 p.m., the NSE Nifty 50 fell 137.00 points, or 0.62%, to 21,793.50, and the S&P BSE Sensex declined 474.49 points, or 0.66%, to 71,677.51.
Earlier in the day, the Nifty 50 rose 0.37% to 22,011.05, and the BSE Sensex rose 0.45% to 72,473.42.
ICICI Bank Ltd, HDFC Bank Ltd., Axis Bank Ltd., ITC Ltd., and Kotak Mahindra Bank weighed on the benchmark Nifty.
State Bank of India, Power Grid Crop of India Ltd., Tata Consultancy Services Ltd., Hindalco Industries Ltd., and Bharat Petroleum Corp Ltd limited losses in the benchmark index.
On NSE, seven out of 12 sectoral indices declined, while five sectoral indices advanced. The Nifty FMCG declined 1.25% to become the worst performing sector among sectoral indices.
Broader markets were trading on a mixed note. The S&P BSE Midcap 0.60%, and Smallcap fell 0.50%.
On BSE, 10 out of 20 sectors rose, and 10 declined. The S&P BSE FMCG stock declined the most among sectoral indices.
Market breadth was skewed in favour of sellers. Around 2,012 stocks fell, and 1,713 stocks rose, and 118 stocks remained unchanged on BSE.
