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Sensex, Nifty slip as RBI keeps repo rate unchanged at 5.15%

Sensex, Nifty slip as RBI keeps repo rate unchanged at 5.15%

Sensex, Nifty slip as RBI keeps repo rate unchanged at 5.15%
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By Ajay Vaishnav  Dec 5, 2019 12:41 PM IST (Published)

At 11:48 am, the Sensex traded lower at 40,769.73, down 80.56 points or 0.20 percent, while the Nifty50 traded 31.60 points or 0.26 percent lower at 12,011.60.

Indian shares traded lower as the Reserve Bank of India kept repo rate unchanged at 5.15 percent. Trade sentiment turned negative as the country's monetary policy regulator disappointed investor hopes of an interest rate cut amid slowing growth in Asia's third largest economy. The RBI Monetary Policy Committee (MPC), however, maintained its stance as 'accommodative', while recognising that there is scope for future action.

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The RBI MPC further sharply reduced its gross domestic product forecast for the current fiscal to 5 percent from a 6.1 percent projection earlier, while the growth for the second half of the current fiscal was also reduced at 4.9-5.5 percent against 6.6-7.2 percent projected earlier. India’s economic growth slowed to 4.5 percent in the July-September period, its weakest pace since 2013.
At 11:48 am, the Sensex traded lower at 40,769.73, down 80.56 points or 0.20 percent, while the Nifty50 traded 31.60 points or 0.26 percent lower at 12,011.60. The Nifty has risen 7.7 percent and the Sensex has gained 8.43 percent since the last rate cut in October, mainly due to measures such as reducing the corporate tax rate and expectations of more stimulus.
Broader market indices traded flat with the Nifty MidCap 100 index down 0.10 percent. Barring IT and Media, NSE sectoral indices declined with PSU Bank, Metal and Pharma dipping the most by up to 1.6 percent. Nifty Bank was lower over half a percent.
Among top Nifty gainers, Zee Entertainment Enterprises, Tata Consultancy Services, Indian Oil Corp, Titan and ITC traded higher by up to 3.41 percent. HCL Tech, Coal India, JSW Steel, Sun Pharma and Gail shares traded lower.
ICICI Bank shares hit a fresh 52-week high and surged 1.32 percent in intraday deals after brokerage firm Macquarie rated the stock 'overweight' with a target price of Rs 615 per share.
Shares of Housing and Urban Development Corporation (Hudco) declined as much as 10 percent after the company reported default in repayment of certain dues.
Lemon Tree Hotels shares rallied over 5 percent on Thursday after global brokerage CLSA maintained a ‘buy’ rating on the stock with a target price of Rs 80 per share.
In the currency market, the Indian rupee traded at 71.63 per US dollar at 12.23 pm. The home currency had opened on a weak note and fell 12 paise to 71.78 against the greenback.
The Indian rupee will not recover lost ground in the coming year, according to a Reuters poll of currency strategists who are more pessimistic than last month amid doubts over any kind of trade truce between the United States and China.
The 10-year government bond yield was at 6.46 percent in morning trade. At 12.11 pm, it quoted at 6.55 percent.
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