Monday , May 29 2017
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Rate cut lifts sentiments, but Sensex still down 0.21 percent

Mumbai: The cut in interest rates announced by India’s central bank on Tuesday helped lift key indices that were ruling deep in the red ahead of the policy update but could not counter the weak sentiments on account of global cues.

The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE) which opened at 25,496.38 points, was trading at 25,562.38 points (at 12.00 p.m.) — 54.46 points or 0.21 percent down from the previous day’s close at 25,616.84 points.

The Sensex touched a high of 25,703.38 points and a low of 25,287.33 points in the intra-day trade so far.

Furthermore, the wider 50-scrip Nifty of the National Stock Exchange (NSE) traded flat. It fell by 19.85 points or 0.25 percent at 7,775.85 points.

Both the indices were trading more than one percent down just before the policy announcement by the Reserve Bank of India (RBI) was made.

The markets were elated after the monetary easing announcement.

The Sensex that opened sharply lower on Tuesday morning and was hovering around that level with a loss of some 1 percent, zoomed into the positive territory, seconds after RBI Governor Raghuram Rajan’s announcements.

However, the markets failed to maintain the positive momentum on the back of concerns on the prospects of further rate cuts and disappointing outlook of global economic scenario.