Stock Market

Market falls as RBI keeps policy rates unchanged

Sensex, Nifty tumbled after the Reserve Bank of India kept key policy rates unchanged after monetary policy review today, 6 Dec 2017. The BSE Sensex fell 205.26 points to 32,597.18. The NSE Nifty 50 index fell 74.15 points to 10,040.10. Negative cues from global stocks also spoiled investor’s sentiment.

Banks stocks declined after the RBI kept policy rates steady after monetary policy review today. The falling banks stocks includes ICICI Bank (-2.31%), HDFC Bank (-1.18%), Yes Bank (-0.71%), Axis Bank (-0.63%), IndusInd Bank (-0.62%), City Union Bank (-0.61%), Federal Bank (-0.46%), RBL Bank (-0.13%) and Kotak Mahindra Bank (-0.11%).

Metal & mining sector stocks edged lower as commodities prices fell in the international market since investors raised convert over China demand for metals. The declined metal stocks include Hindustan Copper (-4.71%), Jindal Steel & Power (-4.03%), Hindalco Industries (-3.15%), Hindustan Zinc (-3.18%), Steel Authority of India (-2.68%), NMDC Limited (-2.88%), JSW Steel (-2.24%), Vedanta (-2.39%), National Aluminium Company (-2.18%) and Tata Steel (-1.10%).

RBI left the repo rate unchanged at 6 percent but increased the CPI inflation target. The RBI, at its 5th Bi-Monthly Monetary Policy meet, increased the CPI inflation target for October – March to 4.3% to 4.7% from 4.2% to 4.6% earlier.