Equity benchmark indices ended in the red on Thursday, a day after the Central Bank raised its repo-rate, as well as with continued capital outflows in the wake of weakness in global stocks, dampened investor’s sentiments.
The Sensitive index of the BSE (Sensex) ended at 37,165.16, down 356.46 points while broader Nifty slipped below the crucial level of 11,250 at 11,244.70, down 101.50 points,
Shares of HDFC twins, Reliance Industries, Kotak Bank, Maruti Suzuki, ITC, TCS and Mahindra & Mahindra were the major draggers both in Sensex and Nifty today.
Key factors that triggered market sentiment today: Investors sentiment damned by the increase in the key lending rates by the RBI, which on Wednesday hiked its key lending rate by 25 bps to bring the repo to 6.50% citing inflationary concern. Consequently, heavy selling in interest-sensitive sectors such as auto and banking dragged benchmark equity indices on Thursday.
GST Concerns: Market players also remained watchful with a report stating that the GST collection rose in July but stayed well lower the govt target of Rs 1.00 lakh crore for the third consecutive month of the current financial year, starting April 1
Macro-economic constancy: The markets sentiments also get affected with RBI Governor Urjit Patel flagging the risks to macro-economic constancy from a potential currency war amidst rising global trade tensions.