25 bps rate cut not enough; RBI fails to excite Dalal Street

NEW DELHI: RBI's 25 basis point repo rate cut failed to garner any market reaction. Benchmark indices extended some losses in afternoon trade on Wednesday after the RBI announcement, only to turn choppy again.

BSE Sensex was 80 points or 0.24 per cent down at 32,495.64 while Nifty was trading 0.27 per cent or 27 points lower at 10,087.50 at around 2:35 pm.

Interest-rate sensitive stocks took a beating with all sectoral indices on NSE trading in red.

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Nifty Bank that hit an all time high in trade earlier today was 0.20 per cent down at 25,072 with shares of HDFC Bank (down 0.41 per cent), IDFC Bank (down 0.34 per cent), The Federal Bank (down 0.13 per cent) being the top index losers.

Nifty Realty was 0.48 per cent down at 281.60 with stocks such as Unitech (down 4.09 per cent), Oberoi Realty (down 1.94 per cent) and Godrej Properties (down 1.90 per cent) being the major drags on the index.

Meanwhile, Nifty Auto index pared gains and was 0.46 per cent down at 11,120. Shares of Ashok Leyland (down 1.76 per cent), Tata Motors (down 1.53 per cent) and TVS Motor (down 1.36 per cent) pulling the index down.