Sensex, Nifty fall for 4th day ahead of RBI policy decision

Bears were back in control, with eight shares in the red for every five that advanced on BSE.

Mumbai: Benchmark equity indices Sensex and Nifty closed lower for the fourth day in a row on Thursday, hurt by weakness in financial stocks and muted global cues amid fresh recession fears.

All eyes are now set on the Reserve Bank of India’s monetary policy review on Friday, where the central bank is widely expected to cut repo rates.

Traders war fears also made a comeback after the US on Wednesday said it would enact 10 per cent tariff on European-made Airbus planes and 25 per cent duties on French wine, Scotch and Irish whiskies and cheese from across the continent as punishment for illegal EU aircraft subsidies.


The announcement came after the World Trade Organization gave Washington a green light to impose tariffs on $7.5 billion worth of EU goods annually in the long-running case, a move that could ignite a tit-for-tat transatlantic trade war.

Market at a glance:

BSE Sensex shed 0.52 per cent or 198.54 points to close at 38,106.87, while NSE Nifty closed 0.41 per cent or 46.80 points lower at 11,313.10.
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Bears were back in control, with eight shares in the red for every five that advanced on BSE.

BSE Metal and Telecom indices led the losses among sectoral indices with a 3 per cent and 1.48 per cent fall, respectively.

As many as 19 stocks out of 30-pack Sensex closed lower. Private lender HDFC Bank contributed the most to the losses with a 2.04 per cent decline. Peer Kotak Mahindra Bank and mortgage lender HDFC followed next, as they fell 1.93 per cent and 1.06 per cent, respectively.

Shares of YES Bank bucked the trend and rallied 32.97 per cent as investors thought the promoter share sale overhang on the stock was over. Following the recent invocation of pledged shares by lenders and offloading of stake by various promoter entities, co-promoter Rana Kapoor’s stake in the bank has slipped below 1 per cent.
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Metals and mining firm Vedanta topped the losers’ list, as it dropped 4.66 per cent value.

Analysts view
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“Weak global economic data and under performance in banking stocks bought uncertainties to investors. Shortfall in GST collection may impact government’s ways and means to tackle fiscal path. While bond yield declined in expectation of further interest rate cut by RBI and government’s status quo on borrowing plan. Benign oil prices and comfort level in CPI inflation will aid RBI to keep the rate cycle towards south” -- Vinod Nair, Head Of Research at Geojit Financial Services

“The broader market has been consolidating after a strong recovery seen in the recent past. This upmove is an attempt to gain the lost momentum with an objective of conquering previous highs. Nifty50 has strong support at 11,100 levels. As long as the same is held, we expect 12,100 to be conquered in the next few weeks. On the other hand, breach of the same would result in significant selling pressure. Trades can take long bets with support of 11,100. Investors are advised to do selective accumulation” -- Sahaj Agarwal, Head of Derivatives, Kotak Securities.

Global Markets

Global stocks dropped as already-growing market fears about global growth were fanned by the US announcement of new import tariffs on products from the European Union, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.60 per cent. The pan-European STOXX 600 index dipped 0.04 per cent.

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