After the Reserve Bank of India held key interest rates stable at record lows, as largely expected, and maintained its accommodative posture to stimulate the country’s economic development, Indian market benchmarks moved lower on Friday, owing to profit booking in banking equities. The Sensex dropped 157 points, while the Nifty 50 index plunged to an intraday low of 15,622.35. Reliance Industries, HDFC Bank.
The Sensex fell 132 points to 52,100, while the Nifty 50 index dropped 20 points to 15,670. The Reserve Bank of India (RBI) kept the repo rate, which is the country’s key lending rate, at 4% and the reverse repo rate, which is the borrowing rate, at 3.35 per cent.
Inflation and the pandemic are projected to have an impact on end users’ actual income and spending power, affecting first-quarter results. According to Gaurav Garg, head of research at CapitalVia Global Research, this will lead markets to consolidate for a while or suffer a correction.