Sensex opens 100 pts lower on caution ahead of RBI meet outcome
- Author: Kyle Warner Apr 07, 2017,
Apr 07, 2017, 2:26
The broader Nifty index ended at 9,261.95, down 3.20 points or 0.03 percent from its previous close.
The Sensitive Index (Sensex) of the BSE, which had closed at 29,974.24 points on Wednesday, opened lower at 29, 946.89 points.
Rate sensitive stocks such as banks, real estate stocks rallied after the Monetary Policy Committee (MPC) made a decision to keep the policy rates and cash reserve ratio (CRR) unchanged. However, it hiked the reverse repo, or the rate it pays lenders, by 0.25 per cent to 6 per cent, thus narrowing the policy corridor.
The central bank also raised the growth forecast for the current fiscal to 7.4 per cent from 6.7 per cent in 2016-17.
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Meanwhile, foreign portfolio investors (FPIs) remained net buyers on the domestic bourses, snapping up shares worth a net Rs 340.13 crore yesterday, as per provisional data released b the stock exchanges.
A total of 895 shares ended with losses while 791 finished with gains while 64 ruled steady.
Sector-wise, the S&P BSE consumer durables index plunged by 100.78 points, followed by the healthcare index, which dipped by 98.18 points, and the FMCG index, which fell by 73.47 points.
Besides, profit booking after Wednesday's gains, coupled with negative global cues, hampered the upward movement of the key indices. Further, the central bank is preparing to take next steps on banks' stressed assets, and will issue a corrective steps framework by mid-April, he said. European markets too were trading in the negative terrain in their early deals. Japan's Nikkei 225 Index plunged 1.4 per cent, Singapore's Straits Times Index slipped 0.1 per cent, Hong Kong's Hang Seng index declined 0.5 per cent, Korea's KOSPI index lost 0.4 per cent and China's Shanghai Composite Index inched up 0.1 per cent. Frankfurt's DAX 30 fell 0.41% while Paris CAC 40 was down 0.07% in their early deals.