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Closing Bell: Sensex, Nifty end lower; banks, financials decline post RBI announcements

Closing Bell: Sensex, Nifty end lower; banks, financials decline post RBI announcements

Closing Bell: Sensex, Nifty end lower; banks, financials decline post RBI announcements
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By CNBCTV18.com May 22, 2020 3:50:17 PM IST (Updated)

The Sensex ended 260 points lower at 30,672, while the Nifty50 fell 67 points to settle at 9,039.

Indian shares tumbled on Friday, with banks and financial stocks leading the fall after Reserve Bank of India (RBI) announcements failed to impress investors.

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The Sensex ended 260 points lower at 30,672, while the Nifty50 fell 67 points to settle at 9,039. Market breadth was in favour of declined with the advance-decline ratio at 2:3.
Financials declined with Nifty Bank and Nifty Fin Services down 2-3 percent after RBI extended the moratorium period by another three months till August 31, 2020.
For the week, Nifty and Sensex lost 1 percent and 1.4 percent, respectively, while Nifty Bank shed 8 percent. This is the third consecutive week of declines for the benchmarks.
RBI Governor Shaktikanta Das came out today for the third time with a set of measures to alleviate distress in the economy caused due to the COVID-19 pandemic. He announced a 40 basis points repo rate cut to 4 percent from 4.4 percent earlier. The Monetary Policy Committee held an out-of-cycle review meeting from May 20-22 and the policy stance was maintained 'accommodative' until the growth revived.
Meanwhile, the sentiment was also negative as Asian peers tumbled after China moved to impose a new security law on Hong Kong after last year’s pro-democracy unrest, further straining fast-deteriorating US-China ties.
Back home, 4 of the top 5 Nifty losers were financial stocks. Axis Bank, HDFC, Bajaj Finance, Bajaj Finserv, and Hindalco were the top losers, while, Zee, M&M, Cipla, Shree Cement, and Infosys were the top gainers, up between 2.5 percent and 6 percent.
Among sectors, apart from bank and financial indices, Nifty Metal and Nifty Realty also lost 1.8 percent and 1.1 percent. Meanwhile, Nifty IT rose 1.4 percent, Nifty Pharma gained 0.8 percent, and Nifty Auto was up 0.3 percent.
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