Indian market sentiment remains low with expected 25bps cut in interest rates
Some of the leading stocks that saw a decline in their share prices were Adani Ports, State Bank of India, ICICI Bank, Bank of Baroda and Bharti Airtel.
The stocks that ended the day as gainers were BPCL, Power Grid, HCL Tech and Lupin.
Earlier on Tuesday, the Reserve Bank of India (RBI) came out with its first bi-monthly policy review of 2016-17.
As expected, RBI governor Raghuram Rajan cut key interest rates by 25 basis points, taking repo rate to 6.5 per cent.
The RBI reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 95% of the requirement to 90% with effect from the fortnight beginning April 16, 2016, but kept the CRR unchanged at 4.0% of net demand and time liabilities (NDTL).
RBI also narrowed the policy rate corridor from 100 bps to 50 bps, indicating that the reverse repo— at which banks can park excess funds with the RBI — would now stand at 6 per cent.
The central bank also retained its GDP growth forecast at 7.6 per cent, on the assumption of a normal monsoon and a boost to consumption through the implementation of the Seventh Pay panel recommendations, according to media reports.
Image: Wikimedia Commons
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
