The S&P BSE Sensex and NSE Nifty 50 indexes ended on a mixed note despite the Reserve Bank of India’s surprise 75 basis points repo rate cut and cash reserve ratio cut of 1 per cent. Earlier in the day, benchmarks staged a gap up opening and Sensex surged as much as 1,179 points to surpass 31,000marke and the Nifty 50 index advanced above 9,000 mark, However, the benchmarks erased most of the day’s gains despite RBI announcing steep rate cuts as analysts said that the RBI’s steps were on expected lines. “RBI was the last major central bank to cut rates and it had scope for a larger rate cut and these measures came very late,” AK Prabhakar, head of research at IDBI Capital told NDTV over phone.
The Sensex closed 131 points lower at 29,815.59 and the NSE Nifty 50 index rose 19 points to end at 8,660.25. From the day’s highest level, the Sensex crashed 1,310 points and the Nifty nosedived 379 points.
The central bank cut the reverse repo rate by 90 basis points to 4 per cent and reduced the cash reserve ratio of all banks by 100 basis points, besides permitting all commercial banks and lending institutions to allow a three-month moratorium on all loans.
Eight of 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Bank index’s 1.8 per cent gain. Nifty Private Bank index also rallied nearly 1.8 per cent. On the other hand, Nifty Auto index was top loser, down 2,4 per cent.
Mid- and small-caps also ended on a mixed note as Nifty Midcap 100 index fell 0.6 per cent while Nifty Smallcap 100 index rose 0.5 per cent.
Coal India was top Nifty gainer, the stock rose 6.4 per cent to close at Rs 131. Axis Bank, Cipla, NTPC, ITC, UPL, Mahindra & Mahindra, TCS, ICICI Bank, Nestle India and Infosys also rose between 2-6 per cent each.
On the flipside, Bajaj Finance, hero MotoCorp, IndusInd Bank, GAIL India, Maruti Suzuki, Bharti Airtel, Hindalco and HCL Technologies were among the losers.