Mkts extend losses on GDP growth forecast
Sensex drops by 192 pts, Nifty ends low at 11,598
Mumbai: Markets nursed losses for the second straight session on Thursday after the RBI slashed the interest rate but lowered the GDP growth forecast for 2019-20 and kept its monetary policy stance 'neutral' amid uncertainty over monsoon.
Lacklustre services data, depreciating rupee and weak overseas cues also weighed on trading sentiment, brokers said. After a volatile session, the BSE Sensex settled 192.40 points, or 0.49 per cent, lower at 38,684.72.
The broader NSE Nifty dropped 45.95 points, or 0.39 per cent, to end at 11,598. In a bid to boost the sluggish economy before elections, the RBI on Thursday cut the policy rate by 25 basis points for the second time in as many months.
However, the central bank added that the domestic economy is facing headwinds, especially on the global front, as it lowered its economic growth forecast for 2019-20 to 7.2 per cent from 7.4 per cent estimated in February.
It also kept its monetary policy stance 'neutral' amid uncertainty over monsoon. Rate-sensitive stocks ended on a mixed note, with the BSE auto and realty indices rising up to 0.61 per cent, while the BSE bankex lost 0.67 per cent.
Sectorally, BSE IT, energy and oil and gas indices suffered most losses, shedding up to 1.53 per cent.