28 March , 2020 Fdiindia
RBI Rate Cut Fails to Uplift Market, Sensex Falls in Red
On Friday afternoon, stock markets in India erased all their initial gains with the BSE Sensex trading over 250 points lower, although the Reserve Bank of India (RBI) announced an emergency rate cut of 75 basis points.
During the initial period, the 30-stock Sensex tumbled after gaining over 1,100.
The initial euphoria in the market was dampened by the RBI governors concerns over the impact of lockdown on the global economy.
At 12.50 p.m., Sensex was trading at 29,692.03, lower by 254.74 points or 0.85 per cent from the previous close 29,946.77.
It had opened at 30,747.81 and touched an intra-day high of 31,126.03. So far, it has touched a low of 29,360.69 points.
The Nifty50 on the National Stock Exchange was trading at 8,627.95 lower by 13.50 points or 0.16 per cent from its previous close.
So far, Axis Bank, State Bank of India and NTPC gained the most where on the other hand Bharti Airtel, IndusInd Bank and Maruti Suzuki lost the most.
As the COVID-19 pandemic grips the nation with over 700 cases and at least 17 deaths in the country, RBI Governor Shaktikanta Das announced a 75 bps cut in repo rate to 4.4 per cent.
However, the governor warned that there is a high possibility of the global economy plummeting into a recession.
"Expectations of a shallow recovery in 2020 from 2019's decade low in global growth have been dashed," Das said.
"The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. There is a rising probability that large parts of the global economy will slip into recession."