Domestic indices BSE Sensex and NSE Nifty fell around one percent on Thursday after they were dragged by selling banking and auto shares due to increased uncertainty in the timing of interest rate cuts following RBI’s monetary policy committee’s decision to maintain a status quo on the repo rate.
Discarding early gains, the 30-share BSE Sensex fell by 723.57 points or 1 percent to settle at 71,428.43. This happened after the announcement of the RBI monetary policy and hit a low of 71,230.62 later, reflecting a loss of 921.38 points or 1.27 percent.
On the other hand, NSE Nifty tumbled 212.55 points or 0.97 percent to settle at 21,717.95.
Meanwhile, the Rupee settled on a flat note at 82.96 (provisional) against the US dollar on Thursday following RBI’s decision to maintain a status quo on the repo rate.
Forex traders said a negative trend in domestic equities dampened investor sentiments.
At the Interbank Foreign Exchange, the Rupee opened at 82.94 paise against the US dollar and settled at 82.96 against the dollar as the RBI did not change the repo rate of 6.5 percent for the sixth consecutive time.
In another development, Gold price fell Rs 70 per ten grams to touch Rs 63,300 in Delhi on Thursday amidst a fall in the yellow metal prices in overseas markets, HDFC Securities sources said. In yesterday’s previous close, Gold had touched Rs 63,370 per ten grams.
Silver, on the other hand, remained flat at Rs 74,600 per kg.
