However, markets extended their losses at a slower pace after the RBI left the policy repo rate unchanged for the sixth time in a row. Bank stocks appeared to be the best bears of the day and weighed in on the FMCG Index heavyweights. The Nifty 50 dropped its record high profit.
At 12.35 pm, the Sensex traded 78.07 points, or 0.15% lower, at 52,154.36. Meanwhile, the Nifty 50 fell to 15,677.10 early in the morning, hitting a low of 13.25 points or 0.08% at 15,733.60.
In the Nifty 50 – the index heavyweight Nestle and HUL are among the top losers with 1.5% and 1% negative. ICICI Bank, Tata Steel, and Hindalco also lost 1% each. In contrast, ONGC led the gains by 3%, while Coal India, Gross, and Indian Oil each rose 2%. L&T stock was on a fast track, up 1.5%.
Bank Nifty is down nearly 255 points at 35,649. The index rose to 35,810.90 and 35,810.90, respectively.
Heavyweights HDFC Bank, SBI, ICICI Bank, Axis Bank, and BNP each fell 1%. RPL Bank, Bandhan Bank, Kotak Bank, and IDFC First Bank contributed negatively.
The Reserve Bank kept the policy repo rate unchanged at 4% under the Liquid Adjustment Facility (LAF). As a result, the reverse repo rate under the LAF remains unchanged at 3.35% and the margin level facility (MSF) rate and banking rate remain unchanged at 4.25%.
The MPC has decided to renew and sustain growth on a sustainable basis, to maintain the required accommodation level and mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the moving target.