Twitter
Advertisement

RBI policy impact: Stock mkts volatile; Sensex, Nifty down

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The stock markets were volatile today following the Reserve Bank policy that kept the key rate unchanged but reduced SLR to infuse liquidity in the financial system, with BSE benchmark Sensex down over 130 points in the afternoon trade. The Sensex moved into the negative zone following the RBI policy but rose over 108 points after that, only to trade 160 points down later.

It was trading 0.53 %, down 136.49 points at 25,586.87 at 1230 hrs. Similarly, the wide-based National Stock Exchange index Nifty was trading down 37.90 points, or 0.49 %, at 7,645.75. Brokers said RBI's surprise move to slash SLR by 0.50 % to boost liquidity in the financial system seemed to boost trading sentiments for a while.

But the trend reversed later. In its policy review, RBI kept the key interest rate unchanged. It left the short-term lending rate or repo rate unchanged at 8 %, and the cash reserve ratio static at 4 % but slashed statutory liquidity ratio (SLR) by 0.5 % to unlock about Rs 40,000 crore into the system. 

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement