After days of record highs, India’s benchmark indices closed on a low note on Wednesday, following the Reserve Bank of India’s decision to cut its policy rates by 25 basis points to 6% from 6.25%. Traders said the RBI’s decision to lower the policy rate, the first since October 2016, failed to boost sentiment, PTI reported.
The Bombay Stock Exchange Sensex closed 98.43 points lower at 32476.74 while the National Stock Exchange Nifty was down 33.15 points at 10,081.50. The Sensex had hit an all-time high of 32686.48 during intra-day trading.
Stocks of NTPC Limited, Adani Ports and Special Economic Zone, Lupin, Reliance Industries and Cipla gained on both indices, while those of Dr Reddy’s Laboratories, Tata Motors, Oil and Natural Gas Corporation, Infosys and Sun Pharmaceutical Industries finished in the red.
Shares of banking, information technology, metal and realty were down, while those of power, oil and gas, energy, and consumer durables traded in the green.
The rupee, however, jumped to a two-year high of 63.73 against the US dollar, reported NDTV. On Tuesday, it had closed at 64.07 per dollar. According to analysts, strong foreign inflows, a slash in current account deficit and prospects of economic growth helped the home currency to gain some momentum. The RBI’s decision to cut its lending rates also strengthened the rupee.