Markets extended their loss today following continuous selling in metal and banking stocks, close on the heels of a 25 bps interest rate cut by the Reserve Bank of India (RBI). Experts said investors were unmoved as the rate reduction was already priced in while a weak Asian trend led to the correction. Metal, banks, financials, auto and capital goods were on the sell list. The Sensex resumed higher, only to slip to 32,338.38 at 1144 hours, down 138.36 points, or 0.43 per cent. Coal India tanked 1.74 per cent. SBI, Axis Bank, Tata Steel and HDFC too pulled down the index. The broader Nifty also fell 41.30 points, or 0.41 per cent, to 10,040.20. Findings of a monthly survey released today made mood more downbeat, which showed that services PMI for July fell to its lowest level in nearly four years following implementation of GST. The Nikkei India Services Purchasing Managers’ Index (PMI), a pointer to services output on a monthly basis, plunged to 45.9 in July, the lowest since September 2013, from June’s eight-month high of 53.1. Foreign portfolio investors (FPIs) net purchased shares worth Rs 473.72 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) net sold shares of Rs 232.95 crore.
Asian markets declined after surging to the highest level in almost 10 years, with investors assessing strength of company earnings before American labour market data. In the US, the Dow Jones Industrial Average broke above the 22,000 thresholds for the first time yesterday.