3 hrs ago
Sensex, Nifty Fall Ahead of RBI Policy Decision
Indian shares fell on Wednesday, 7 October.
The Sensex and Nifty 50 both lost ground in morning trading.
Investors were waiting to hear what the Reserve Bank of India would say about interest rates.
The article said markets expected a rate increase, but were also concerned about the bank’s future plans.
Oil prices rose after reported attacks by Yemen’s Houthis on Saudi Arabia.
Higher US government bond yields also made investors more worried about stocks.
Some major companies, including HDFC Bank and Reliance, weighed on the Sensex.
These factors together contributed to the market’s decline.
On Wednesday, 7 October, the Sensex fell nearly 500 points, or 0.65%, to an intraday low of 72,591.
The Nifty 50 dropped nearly 0.80% to 22,600, while midcap and smallcap indices fell by up to half a per cent.
Investors were cautious ahead of the Reserve Bank of India’s monetary policy decision and its guidance on rates, growth and inflation.
Brent crude rose more than 1% to near $102 a barrel amid reported Houthi attacks on Saudi Arabia.
The US 10-year Treasury yield climbed to 5.31%, adding to pressure on stocks and concerns about foreign capital outflows.
- Who
- Indian stock-market investors; the Sensex and Nifty 50 were among the affected benchmarks.
- What
- Indian equities fell in morning trade, with the Sensex down nearly 500 points and the Nifty 50 down nearly 0.80%.
- Where
- Indian stock exchanges.
- When
- Wednesday, 7 October, during morning trade; the year is not stated.
- Why
- Caution ahead of the RBI policy decision, rising crude oil prices and higher US Treasury yields weighed on sentiment.
Key facts
- Sensex intraday low
- 72,591, down nearly 500 points or 0.65%
- Nifty 50
- 22,600, down nearly 0.80%
- Market event
- RBI monetary policy decision due that day
- Expected rate move
- A 25-basis-point repo-rate increase was expected, according to the article
- Brent crude
- More than 1% higher, trading near $102 per barrel
- US 10-year yield
- Rose to 5.31% after ending the previous session at 5.27%
- Top Sensex drags
- HDFC Bank, Titan, ICICI Bank, Reliance and Axis Bank
Quotes
V K Vijayakumar
Chief Investment Strategist at Geojit Investments
“The focus of the market attention today will be on the monetary stance and the message from the RBI Governor. A 25 bp hike in policy rates is inevitable and already discounted by the market. What is not discounted is the monetary stance and the central bank’s view on the emerging growth-inflation dynamics. Therefore, the market’s response to the policy would be influenced by the Governor’s comments on the emerging scenario.”
livemint.com
Donald Trump
US president, as identified in the article
“belongs to the United States Navy and the United States.”
livemint.com
Sources
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