Markets retreat from file excessive


Mumbai, June 4

Equity indices treaded lower on Friday, weighed by banking, energy and FMCG stocks, after the RBI left interest rates unchanged but slashed the GDP growth estimate for the current fiscal following the second wave of Covid. Lacklustre global cues and a weak rupee also soured risk appetite, traders said.

The BSE Sensex ended 132.38 points lower at 52,100.05, a day after closing at its lifetime peak. On similar lines, the NSE Nifty slipped 20.10 points to finish at 15,670.25.

Nestle India was the top laggard in the Sensex pack, declining 1.97%, followed by SBI, HDFC Bank, ICICI Bank, Axis Bank, Titan, HUL and Reliance Industries.

On the other hand, Bajaj Finserv, ONGC, L&T, Bajaj Finance and HDFC were among the gainers, climbing up to 2.53%.


Nestle top loser IN SENSEX PACK

  • The BSE Sensex ended 132.38 points lower at 52,100.05, a day after closing at its lifetime peak
  • On similar lines, the NSE Nifty slipped 20.10 points to finish at 15,670.25
  • Nestle was the top laggard in the Sensex pack, declining 1.97%, followed by SBI, HDFC Bank, ICICI Bank, Axis Bank, Titan, HUL and Reliance Industries

During the week, the Sensex rallied 677.17 points, while the Nifty soared 234.60 points.

The RBI on Friday left the key interest rates unchanged at record lows as it reiterated its commitment to keep its monetary policy accommodative to help the economy recover from the world’s worst outbreak of Covid infections.

It also lowered its forecast for the country’s economic growth to 9.5% for the current financial year ending March 31, 2022, from the previous estimate of 10.5%.

It projected the retail inflation at 5.1% for this fiscal, within its target range of 4% with a margin of 2% on either side.

The RBI also expanded its version of quantitative easing to keep borrowing costs anchored. It will buy an additional Rs 1.2 lakh crore of bonds under the Government Securities Acquisition Programme 2.0 in the second quarter.

“A moderate increase in inflation forecast by the RBI in its policy meeting outcome led G-sec yields increasing by 3 bps, which resulted in profit-booking in banks,” said Binod Modi, Head-Strategy at Reliance Securities.

The Monetary Policy Committee meeting outcome was mostly in line with expectations as the RBI, in addition to maintaining status quo about policy rates, focused upon ensuring sufficient liquidity in the system. — PTI



Be the first to comment on "Markets retreat from file excessive"

Leave a comment

Your email address will not be published.


*


%d bloggers like this: