Indian market started the day with positive note with major indices gaining more than 2%. Nifty traded initial hour of trading above 8900 and SENSEX above 30000.Today RBI announced a cut in key rates to increase liquidity in the market in a policy meet .Despite cut in key rates, NIFTY and SENSEX gave away early gains.Yesterday Finance minister Nirmala Sitharaman announced 1.7 lakh crores relief packages to fight against Corona virus.
Key highlights of RBI meet :
- Reduced the repo rate by 75 basis points to 4.40 per cent from 5.15 per cent with immediate effect;
- Marginal standing facility (MSF) rate and the Bank Rate stand reduced to 4.65 per cent from 5.40 per cent;
- Reduced the reverse repo rate by 90 basis points to 4.0 per cent;
- To support growth maintaining medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent;
- Increasing probability that large parts of the global economy will slip into recession;
- Emerging and advanced economy currencies are experiencing severe depreciation pressure.
Currently market is experiencing selling pressure on every rise in prices.After yesterday’s blockbuster day,IndusInd started day with more than 15 % but lose stream after RBI policy and currently trading 6 % down at 410.8. Axis Bank is holding on gain and trading more than 10 % gain at 383.Axis bank hit intraday high of 409.45.
IndusInd bank, Maruti, Bajaj finserv and Bajaj finance have witnessed more than 5% cut in prices and are trading near days low. Market is expected to remain choppy in the coming days with negative bias.
Bank NIFTY is trading flat having given away days gain.Bank NIFTY had hit a high of 21,462.40 in early morning session. Last it traded at 19,617.55. Bandhan bank and Axis bank are trading higher with gain of more than 5%.
Nifty Auto index is trading 3% lower. Bharat forge,TVS motor, Maruti , Hero motocorp and Eicher motors are major losers having lost between 4 to 6%.
Market is on a way to end its three days positive run.In last three trading days ,NIFTY have gain more than 15%.Interest sensitive sectors like Banks,Realty and auto sectors are expected to hit hard by 21 days lock down despite cut in key rates.