The Indian market traded volatile on Thursday afternoon after the Reserve Bank of India (RBI) cut interest rates and changed its monetary policy stance to “neutral” from “calibrated tightening”. The RBI reduced repo rate to 6.25 percent from 6.50 percent earlier. Four of six members of the MPC voted in favour of cutting rates, while all six members voted for a change in the stance.
At 1.15 pm, the Sensex was trading 50 points higher, at 37,025, while the Nifty was at 11,072.55, up by just 10 points. Benchmark indices erased gains on profit-booking, particularly with Reliance Industries and HDFC dragging indexes.
Broader markets outperformed with the Nifty MidCap rising almost a percent and the BSE MidCap up a percent.
Among sectoral indexes, Nifty Energy was down more than a percent, leading among 12 declining sectors. Nifty and BSE Metal also fell almost half a percent. BSE Telecom surged more than 2 percent, the highest among 30 rising sectors.
Among stocks, Sun Pharma shares rose 5 percent, while Bajaj Auto also soared 3 percent. Zee Entertainment, Bharti Infratel, Yes Bank, Tata Motors and Hero Moto, gained between 2 and 2.5 percent.
At 1.24 pm, the rupee traded at 71.50 against the US dollar. The home currency opened at 71.67 against the greenback, from its Wednesday’s close of 71.56.
In debt markets, the yields on the 10-year government bonds fell 0.31 percent to 7.34 percent from its previous close of 7.36 percent. Bond yields and prices move in opposite directions.
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First Published: IST