For the second time in a row, Dalal Street failed to surge and ended at a plunging range.
A day after RBI ‘s announcement of 25 basis rate cut failed to usher in a streak of cheer amidst the investors as the markets are drowning ever since.
Plunging Story of Sensex
The S&P BSE Sensex lost some 238 points, or 0.74 per cent, to settle the day at 32,237.
Pharma major Lupin closed lower by 3.80 %, Coal India –by 3.36 %, SBI tanked down 2.24% amongst several other stocks which dragged Nifty to remorseful levels.
On a larger scale, Nifty50 index of the National Stock Exchange (NSE) ended 67 points or 0.67 per cent lower at 10,013. The harsh performer was indubiously the banks which tanked down almost 2.89% to 3,552.
What went wrong?
The markets would have welcomed the rate cut with a wide cheer, had the RBI not spewed neutral sentiments on the forward-looking Indian markets. Moreover, the markets had discounted the RBI rate cut by 25 basis points to 6%.
“Disappointed by yesterday’s decision of the central bank, interest rate sensitive stocks were under pressure today. If the RBI had shifted its stance from neutral to accommodative, the extent of the impact could have been minimal,” said Vinod Nair, Head of Research, Geojit Financial Services.
Strong Global Cues
Amidst other indices, Wall Street and Dow Jones closed in the money. Dow closed above an unprecedented 22,000 mark supported by strong corporate earnings.
Foreign portfolio investors (FPIs) net purchased shares worth Rs 473.72 crore on Wednesday, as per provisional data. Domestic institutional investors (DIIs) net sold shares of Rs232.95 crore.
Reliance Industries shot up to 1.38% to close at a record high.
Stocks like Ambuja Cements, Bharti Infra, Aurobindo Pharma, Tech Mahindra, TCS, Hero MotoCorp, PowerGrid Corp, Asian Paints, M&M outperformed the plunging market trend today.
Conversely, stocks like Coal India, SBI, YES Bank, Axis Bank, ICICI Bank, Tata Steel closed in the red.