Sensex Tanks 430 Pts, Nifty Below 11,200 after RBI’s Policy Review

An investor watches an electronic board showing stock information at a brokerage office in Beijing, China, on 9 July 2015. Image used for representational purposes.

(Photo: Reuters) 

Equity benchmarks closed in red on Friday, 4 October. BSE Sensex fell 433 points to 37,673.31 and NSE Nifty 50 fell over 1.23 percent to close at 11,174 points at 3:30 pm.

The Indian equity benchmarks erased gains after the Reserve Bank of India's 25 basis point cut in the policy rate and traded low on the same day.

Earlier in the day, the S&P BSE Sensex fell over 600 points from day’s high to trade at 37,819 as of 2 pm and the NSE Nifty 50 fell 0.8 percent to 11,223. The broader markets represented by the NSE Nifty 500 Index fell 0.7 percent, BloombergQuint reported.

The market breadth was tilted in favour of sellers. About 1,040 stocks declined and 681 shares advanced on the National Stock Exchange.

The Reserve Bank of India cut the repo rate by 25 basis points to 5.15 percent on Friday, 4 October, saying the reduction was necessary to revive growth.

With the first quarter GDP growth plunging to 5 percent, the RBI cut its estimate of economic growth in the current fiscal to 6.1 percent from its earlier estimate of 6.9 percent.

(With inputs from BloombergQuint, moneycontrol)