Market Wrap: Sensex Nifty fall after RBI MPC status quo; banking stocks among top drags
equity market witnessed an all-round selloff on Thursday even as the Reserve Bank of India (RBI) maintained a status quo on the repo rate and policy stance on expected lines but raised inflation projections for the current financial year due to the recent rise in vegetable, cereals and pulses prices. The six-member monetary policy committee (MPC) of the RBI unanimously decided to keep the repo rate unchanged at 6.50 per cent for the third straight meeting in a row. The MPC also decided to keep the policy stance unchanged as ‘Withdrawal Of Accommodation’.
Read more: RBI MPC Meeting: Growth resilient but inflation remains a risk; key takeaways from RBI policy decision Following the policy announcement, the market benchmark Sensex and Nifty fell as the central bank raised its inflation projection and hinted that the rate could stay elevated for a longer period. Read more: RBI monetary policy: Does revision in inflation projection mean no rate cut coming in 2023? Mixed global cues also failed to lift sentiment. Investors awaited US inflation data, which is expected later today, to get cues on what Fed could do in its next policy meeting.
Equity barometer Sensex opened 50 points lower at 65,945.39 against the previous close of 65,995.81 and remained in the red throughout the session. The index fell 487 points, hitting an intraday low of 65,509.14. Nifty touched the intraday low level of 19,495.40.
Sensex finally ended 308 points, or 0.47 per cent, lower at 65,688.18 while the Nifty closed the day at 19,543.10, down 89 points, or 0.46 per cent. Banking stocks such as HDFC Bank and ICICI Bank were among the top drags on the Sensex index. ITC, Asian Paints, Kotak Mahindra Bank and Axis Bank also ended among the top drags on the
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