Sensex, Nifty turn negative after surprise repo rate cut; check what’s keeping investors on edge

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Published: May 22, 2020 10:26:26 AM

The biggest losers on BSE Sensex were Tata Steel, HCL Tech, Power Grid, NTPC, ONGC and Axis Bank, down by 1.92%, 1.69%, 1.57%, 1.22%, 1.17% and 1%, respectively

sensexThe markets are consolidating around its support range of 9020 – 9050. If it can sustain at these levels, it would attempt to reach 9200

Indian share market benchmark indices BSE Sensex and Nifty 50 slipped over half a per cent as RBI announced to slash repo rate by 40 bps on Friday. The 30-share Sensex was down 168 points or 0.45 per cent to trade at 30,795. While the broader Nifty 50 index was ruling at 9,054, down 53 points or 0.58 per cent today. The biggest losers on BSE Sensex were Tata Steel, HCL Tech, Power Grid, NTPC, ONGC and Axis Bank, down by 1.92%, 1.69%, 1.57%, 1.22%, 1.17% and 1%, respectively. “The markets are consolidating around its support range of 9020 – 9050. If it can sustain at these levels, it would attempt to reach 9200. However, if it fails to hold 9020/9030, it can slide to 8930. For now, the bias is toward the upside,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

RBI slashed repo rate: RBI announced to cut repo rate by 40 bps while maintaining the stance as accommodative. Governor Shaktikanta Das said that the MPC was unanimous on the need to cut the repo rate. However, the reverse repo rate has been cut by 40 bps to 3.35 per cent from 3.75 per cent earlier.

RIL share price gain: RIL shares gained one per cent to Rs 1,453 apiece on BSE in otherwise weak trade on Friday as the company announced that KKR will invest Rs 11,367 crore for a 2.32 per cent equity stake in Jio Platforms.

Q4 earnings: Trent, Wabco India, Godrej Industries, IDFC First Bank, Supreme Industries, BASF India, Bayer CropScience and JSW Steel are among 25 companies which are scheduled to announce their March quarter earnings on Friday.

Top BSE Sensex gainers: The biggest gainers on Sensex were Ultratech Cement, State Bank of India (SBI), Infosys, Asian Paints and Tech Mahindra, which were up by 2.45%, 1.48%, 1.39%, 1.29% and 1.07%, respectively.

Global markets: In overnight trade on Wall Street, US stock market indices settled lower. The Dow Jones Industrial Average fell 0.41% to end at 24,474.12 points, while the S&P 500 lost 0.78% to 2,948.51. The Nasdaq Composite dropped 0.97%, to 9,284.88.

FII and DII data: Foreign institutional investors (FIIs) sold shares worth Rs 258.73 crore, while domestic institutional investors (DIIs) bought shares worth Rs 401.78 crore on a net basis on Thursday, according to the provisional data available on the NSE.

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