Market Close: Sensex dips 553 points post RBI policy meet

The benchmarks indices registered its biggest single-day loss for calender year 2019 on Thursday. Public banks lost the most. The biggest dragger were GAIL, IndiaBulls Housing, SBI, Yes Bank and IndusInd Bank.

On Thursday, RBI announced a 25 basis point repo rate cut, easing interest rates and changed policy stance from neutral to accommodative. The biggest dampener for the market was that RBI did not announced any liquidity enhancing measures to provide relief to the non-banking financial company (NBFC) sector and housing finance companies (HFCs). This hit the sentiments of the banking and financial sector stocks.

Also, the RBI Governor Shaktikanta Das said that a revised circular on NPA resolution norms will be released in the next 3-4 days.

Reacting to the RBI policy meet, the BSE Sensex dipped by 553 points or 1.38 per cent to close at 39,529.72, while Nifty closed at 11,847.10, down by 174.55 points or 1.45 per cent on Thursday. Nifty Bank bleeds 731.65 points, down by 2.32 per cent at 30,857.40.

Sectorally, Nifty PSU Bank index was down by 4.90 per cent and Nifty Pvt Bank index was down by 2.29 per cent, along with all sectoral indices closing the red zone. Nifty Mid-cap 100 closed down by 1.65 per cent, while Nifty Small-cap 100 closed down by 1.86 per cent.

Meanwhile, Indian Metrological Department (IMD) has forecast that monsoon would be delayed and will reach Kerala on June 8 and hit Mumbai by June 15.

Among the top losers on the indices were GAIL down by 11 per cent, IndiaBulls Housing down 7.53 per cent, IndusInd down 6.97 per cent, Yes Bank down 6.15 per cent and SBI down 4.34 per cent. Index stocks that posted gains were Coal India, Power Grid, HUL, Titan, Hero MotoCo and Asian Paints.