INDIAN BENCHMARKS: SENSEX TANKS 516 POINTS IN THUMBS-DOWN TO RBI, NIFTY 50 AT 7603
Dalal Street had built in too much of hope from the Reserve Bank of India, it seems!
The 25 basis points repo rate cut that the central bank delivered at its first rate-setting meeting of the new financial year was not enough for equity investors, who resorted to a large-scale selling that took the benchmark Sensex down by over 500 points.
Bank stocks bore the brunt, with top lenders State Bank of India and ICICI Bank tanking nearly 6 per cent each, and BSE Bankex shedding over 3 per cent to emerge the biggest loser among all sectoral indices. All 12 components of Nifty Bank ended with losses. Among other rate-sensitive sectors, BSE Auto index fell 2.80 per cent, led by losses in Tata Motors, Eicher Motors and Apollo Tyres. The BSE Realty index lost 2.60 per cent, while the Capital Goods index shed 2.64 per cent, reflecting the market's dissatisfaction with the less-than-expected rate cut.
HEADLINES OF THE DAY
RBI cuts Repo Rate by 25 bps
Aurobindo gets USFDA nod for anti-infective drug
Hero Motocorp March 2016 sales grow 14% YoY
The crucial resistance for Nifty SPOT is now seen at 7666 and above this 7740. Support for the immediate term is now placed at 7580 and next support will be 7515.
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