The BSE Sensex and NSE Nifty opened in red on Tuesday tracking weak global cues. (Photo: PTI)
11.18 am: Home loans are set to become cheaper after the Reserve Bank of India on Tuesday in its monetary policy review announced to cut repo rate by 50 basis points to 6.75 per cent. Shares of SBI, IndusInd Bank and HDFC Bank were up 0.15 per cent, 0.62 per cent and 0.68 per cent.
11.11 am: Post rate cut interest sensitive banking and realty stocks turned green. The BSE Bankex and BSE Realty index were up 0.38 per cent and 0.93 per cent at 19,668 and 1,354. BSE Auto index was down 0.16 per cent at 16,989.
11.08 am: RBI Governor Raghuram Rajan surprised market analysts on Tuesday. A Reuters poll last week showed only one out of 51 economists had expected a 50 basis points rate cut, while 45 had expected a 25 bps cut. Sensex and Nifty were up 6 points and 10 points at 25,622 and 7,805.
11.02 am: Sensex was up 86.54 points at 25703.38. Shares of HDFC was up over 2 per cent at Rs 1,199.70.
11.00 am: RBI cuts repo rate by 50 basis points. Sensex wiped off some its losses and was down 133 points 25,483. Repo rate is now at 6.75 per cent.
10.54 am: All the major sectoral indices in the BSE were trading in the red as the BSE Midcap and Smallcap indices lost 1.3 per cent and 1.2 per cent, respectively. Sensex down over 300 points at 25,312. Nifty was down 94 points at 7,701.
10.27 am: Interest sensitive stocks are in focus ahead of the Reserve Bank of India (RBI) fourth bi-monthly monetary policy which is scheduled around 11 am on Tuesday. Most of markets are predicting that the RBI may go for a 25 basis points rate cut this time. In the early trade on Tuesday, the 30-share index was down around 1 per cent at 25,373 at 10 am. BSE Bankex, BSE Auto and BSE Realty were down 1.76 per cent, 1.71 per cent and 1.18 per cent, respectively. Nifty was down 85 points at 7,711.
10.02 am: The rupee fell sharply by 32 paise at 66.37 against the US dollar in early trade today at the Interbank Foreign Exchange due to month-end demand for the American currency from importers. Sensex was down 246 points at 25,370. Nifty was down 79 points at 7,716.
9.27 am: Sensex was down 286 points at 25330. Nifty was down 79 points at 7,716. Nitasha Shankar, vice president, research, YES Securities, said, “The global investors are back to being cautious with worries related to China and overall growth of the global economy. In such a scenario all eyes are turned towards the RBI. Expectations are for a rate cut in the policy meet scheduled to be held today. These expectations were visible in the run up seen in the rate sensitive sectors in the previous trading session.”
READ: 4 reasons why RBI may go for a rate cut today
9.16 am: Sensex was down over 300 points at 25,307.94. Nifty was down over 1 per cent at 7,712. Vedanta, ICICI Bank, Bharti Airtel, Axis Bank, Hindalco and Tata Steel declined over 2 per cent in the early trade.
Domestic equity markets opened lower on Tuesday tracking weak global cues. Sensex opened 120.46 points down at 25,496.38. Nifty opened 70 points down at 7,725.70.
Interest sensitive stocks are likely to be in focus ahead of the Reserve Bank of India’s (RBI) monetary policy review, which is scheduled around at 11 am. The RBI had kept its benchmark lending rate – the repo rate unchanged at 7.25 per cent in its monetary policy review on August 4.
How has the market reacted to the three previous RBI monetary policy decisions?
On Monday, Sensex closed 246.66 points down at 25,616.84 while Nifty closed 72.80 points down at 7,795.70. Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “We are in a wait and watch scenario ahead the RBI policy meet on Tuesday. We believe that the market has already considered a rate cut of 25 basis points, hence the commentary will be more important. Given the volatility in the global currency and the likelihood of a US rate hike by Dec-15, the commentary is likely to be hawkish and may not be taken positively by the market.”
Global Markets
New York: US stocks finished sharply lower on Monday and were on track for their worst quarter in four years as investors worried about the health of China’s economy and its potential impact on the timing of a US interest rate increase.
London: Britain’s leading share index fell on Monday as fears grew over mining group Glencore’s ability to withstand a metals price slump and as Vodafone’s European tie-up talks with Liberty Global LBTYA.O ended.
Tokyo: Japan’s Nikkei share average tumbled more than 2 per cent to an 8-month low on Tuesday as fears about China’s cooling economy pummelled shares of commodity and machinery firms.
Hong Kong: The Hang Seng index was down 3.4 per cent.
(With inputs from agencies)
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