The key benchmark indices BSE Sensex and NSE Nifty plunged 0.41 per cent and 0.31 per cent to 28,071.93 and 8,516.90, respectively.
Domestic equity markets snapped a four-day winning streak on Tuesday as investors turned cautious after the Reserve Bank of India (RBI) kept key rates unchanged. The key benchmark indices BSE Sensex and NSE Nifty plunged 0.41 per cent and 0.31 per cent to 28,071.93 and 8,516.90, respectively.
Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE Consumer Durables retreated the most 0.77 per cent to 11,151.57. It was followed by the BSE Oil & Gas index (down 0.69 per cent), BSE TECk index (down 0.65 per cent) and BSE Information Technology index (down 0.59 per cent).
On the other hand, BSE Metal index and BSE Auto index gained 2.69 per cent and 1 per cent to 8805.33 and 19,440.12, respectively.
Among the Nifty stocks, Tata Steel, Bank of Baroda, Hindalco, Punjab National Bank and Tech Mahindra were the top performing stocks with gains of 4.38 per cent, 3.71 per cent, 3.64 per cent, 3.22 per cent and 3.13 per cent, respectively.
However, Idea Cellular, Cairn India, Hero MotoCorp, GAIL and ONGC slid 3.83 per cent, 2.92 per cent, 2.75 per cent, 2.54 per cent and 2.43 per cent, respectively, and stood at the bottom of the performance chart of the index.
Overall market breadth remained strong on the BSE as 1,621 stocks ended with gains while 1,269 closed with losses. Advances to decline ratio for Nifty remained at 27:23.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “As expected, the disappointment due to the RBI keeping its policy rate unchanged has brought volatility to the market. It is only a temporary impact since the four important risks identified by RBI in its earlier policy (June); monsoon, food inflation, crude prices and external environment, have reduced tremendously. This provides room for a cut rate by the end of September 2015.”
Gaurav Jain, director, Hem Securities said, “RBI’ status quo monetary policy review turned non-eventful for the D-Street with indices shutting the day on flat note. However, select banking stocks and metal stocks witnessed buying interest trimming the day’s losses. Strong rupee also aided the indices recover the early losses.”
In its bi-monthly policy review on Tuesday, RBI kept the short-term lending rate, or repo rate, unchanged at 7.25 per cent and the cash reserve ratio (CRR), the amount of deposits lenders park with RBI, at 4 per cent.
RBI also retained growth target at 7.6 per cent for 2015-16. It has cut rate thrice so far in 2015 by 25 basis points each.
The central bank was widely expected to maintain status quo on Tuesday, according to stock brokers.
Asian peer markets, Nikkei 225 and Hang Seng declied 0.14 per cent and 0.02 per cent, respectively, while Shanghai gained 3.69 per cent on Tuesday.
On August 5, companies like Camlin Fine, Insecticides, FDC, Marico, Prism Cements, NDTV, Tata chemicals, NDL, IGL, Ashapura mines, Bata India, Brigade, Siemens, JB Chempharma, Nahar spinning, Canara Bank and Ramco cements may announce their earnings.