On April 9, the Indian financial markets ended the day on a depressing note as the bells sounded to signal the end of the trading session. Investors saw a widespread sell-off as benchmark indexes declined, with major industries like IT, real estate, and PSU Banks leading the way.
The Nifty concluded the day at 22,399.15, down 136.70 points or 0.61, while the Sensex ended the day at 73,847.15, down 379.93 points or 0.51. The sell-off occurs right before the April 10 market holiday, when the BSE and NSE will both be closed in honor of Shri Mahavir Jayanti.
The impact was not limited to large-cap stocks. The closing price of the BSE Smallcap index was 44,446.07, down 1.08, while the BSE Midcap index was 39,546.54, down 0.73. With 1,500 gains and over 2,200 equities closing in the red, the market’s breadth was skewed toward falls.
Additionally, banking stocks experienced pressure. The Nifty Bank index ended the day at 50,240.15, down 270.85 points, or 0.545, mostly due to the two percent decline in PSU bank names.
The Reserve Bank of India (RBI) announced a 25 basis point reduction in the repo rate, bringing it down to 6.00%, adding a twist to the day’s events. It is anticipated that this action will result in lower EMIs for borrowers because banks will probably pass the savings on by lowering lending rates. This is the second rate reduction of the year; the first came in February when the rate was lowered to 6.25%.
“The Monetary Policy Committee unanimously decided to lower the repo rate, intending to promote growth while maintaining inflation within target,” stated RBI Governor Sanjay Malhotra.
