The broader Nifty closed 0.73 % lower at 10,044.10 points while the benchmark BSE Sensex ended 0.63 % lower at 32,597.18 points. AK Prabhakar, head research at IDBI Capital, said that weak metals prices were also behind the market correction
Shares of interest rate-sensitive stocks in banking, auto and real estate sectors ended on a lower note on Wednesday after the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 6% in its fifth bi-monthly monetary policy review. Analysts believe that a correction was overdue and that the market will resume its uptrend soon.
The broader NSE Nifty closed 0.73 % lower at 10,044.10 points while the benchmark BSE Sensex ended 0.63 % lower at 32,597.18 points. AK Prabhakar, head research at IDBI Capital, said that weak metals prices were also behind the market correction. The BSE Bankex index ended the session 1.23 % lower, closing at 28,110.49 points. “Tepid Asian markets weighed on the sentiment,” said an analyst. Among the banking stocks, Bank of Baroda (BoB) dipped the most by 2.27 %. Punjab National Bank (PNB), State bank of India (SBI), ICICI Bank, HDFC Bank and Yes Bank were among the losers. Shares of banks in BSE Bankex fell between 0.05% to 2.5%.
The BSE Realty index ended the session with a loss of 0.60% at 2,363.66 points. Prestige Estates Projects was the biggest loser among real estate stocks, declining 2.32% to Rs 304.75. Godrej Properties, Housing Development and Infrastructure (HDIL), Unitech, Omaxe and Indiabulls Real Estate were among the losers in BSE Realty index, declining between 0.4% to 2.4 %. However, Sobha Limited and DLF bucked the trend to end the day with gains. Despite the healthy sales by automobile companies in the recent past, the BSE Auto index too was dragged down, in part by the central bank’s inaction, shedding 0.73 % to close at 24,591 points. Bosch Limited was the biggest index loser. Eicher Motors, Bajaj Auto, Tata Motors, Mahindra & Mahindra (M&M) and Motherson Sumi Systems were the other prominent losers.