Sensex and Nifty closed lower today after RBI announced a surprise repo rate cut repo rate of 40 bps. RBI extended loan moratorium period by 3 months leading to a crash in banking stocks. BSE bankex was down 516 points to 19,890. While Sensex lost 260 points to 30,672, Nifty fell 67 points to 9,039. Asian markets ended in the red after China said it would not set a specific target for economic growth this year considering the impact of coronavirus on the economy. Hong Kong's Hang Seng index sank 5.6% to 22,930.14 and the Shanghai Composite index dropped 1.9% to 2,813.77.
In South Korea, the Kospi lost 1.4% to 1,970.13, while Australia's S&P/ASX 200 declined 1% to 5,497.00. On Thursday, Sensex ended 114 points higher at 30,932 and Nifty gained 39 points to 9,106.
Here's a look at the updates of the market action on BSE and NSE today.
3: 50 pm: M&M (4.46%), Infosys (3.01%) and Asian Paints (2.72%) were top gainers on Sensex.
3: 35 pm: Axis Bank (5.65%), HDFC (4.99%), Bajaj Finance (4.67%) and ICICI Bank (4.32%) were top losers on Sensex.
3: 30 pm: Sensex ends 260 points lower at 30,672 and Nifty fell 67 points to 9,039.
3: 15 pm: Market capitalisation on BSE falls to Rs 121.65 lakh crore as Sensex falls 304 points to 30,628.
3: 00 pm: Market breadth is negative with 877 stocks rising against 1,324 declining on BSE.2: 15 pm: Shanti Ekambaram, Group President , Consumer Banking at Kotak Mahindra Bank said, "There has been a steep fall in consumption demand, combined with supply side disruptions. Together, it has led to a sharp decrease in economic growth. RBI expects the second half of fiscal FY2020-21 to be better but the deep negative in the first two quarters is likely to result in negative GDP growth. Coming on the heels of the package announced by the Centre, the rate cut will help businesses restart. With a gradual lifting of the lockdown, it is now imperative to revive the economy."
1: 45 pm: S Ranganathan, Head of Research at LKP Securities said,"The MPC will continue with its accommodative policy stance given the uncertain inflation outlook while noting that an above 40% rise in Kharif sowing raises hopes. Hence, the RBI formal guidance is more directional in nature. A 35% contraction in capital goods coupled with a 17% drop in iIndustrial production during March along with weak high frequency indicators led to a 5:1 vote by the MPC in favour of a 40bps Repo Rate cut in order to bring back growth. Bond Markets welcomed the cut with the 10 year benchmark at 5.90% today".
1: 15 pm: Abhimanyu Sofat, Head of Research at IIFL Securities said, "The commentary of the governor speech underpins the low prospects of a V-shaped recovery. RBI commentary indicates the stress in the economy on both demand and supply is likely continue. We also believe government should provide subvention on existing loans or bear some cost of the haircut of existing loans. This would ensure more confidence for banks to lend to lower-rated entities or individuals."
1: 00 pm : Rajat Rajgarhia, MD & CEO, Institutional Equities, Motilal Oswal Financial Services said, "RBI continues to support on the Monetary front by doing out of turn MPC meets to cut rates. Lowering the cost of capital is some relief in these times. Moratorium extension was expected, considering the economic activity levels. India would need more measures on a continous basis on both fiscal and monetary front to revive the economy from the current phase of negative growth."
12: 59 pm: Airline shares rise for second consecutive session. While SpiceJet share gained 5% to Rs 45.05, stock of InterGlobe Aviation rose up to 3.85% as airlines are set to resume domestic flights from May 25.
12: 47 pm : Lakshmi Iyer, CIO (Debt) & Head of Products, Kotak Mahindra Asset Management Company said,"There is no doubt that Covid crises and its repercussions on the economic prospects has led the RBI to announce these measures. The downward march of interest rates is likely to gain momentum with this move. The combination of regulatory and monetary measures are indeed the much needed steroids for the ailing economy. We expect easy liquidity conditions and downward rate movement to anchor bond yields and also ease cost of borrowing for the real sector."
12: 45 pm: Asian Paints, Infosys, TCS and Tech Mahindra were top gainers on Sensex.
12:30 pm : Of 30 Sensex stocks, 21 trading in the red. Bajaj Finance, HDFC and Axis Bank fall up to 5% , top losers on Sensex.
11: 45 am: Shishir Baijal, Chairman & Managing Director, Knight Frank India said , "We are delighted with the reduction in prime lending rates announced today by the RBI. With a cumulative 115 basis point rate cut by RBI as response to the impact of COVID -19, we are in line with the rate cuts announced by developed economies like USA (150 bps) and UK (65 bps). Given the backdrop of an unprecedented economic situation, we are happy that the RBI has reduced the key policy rate and taken note of rate cut transmission to borrowers. The extension on the moratorium and improved terms will provide a breather to industry and household borrowers alike."
11: 30 am: Banking stocks fall afer RBI extends loan moratorium period by 3 months; SBI hits 52 week low. Bank Nifty loses 457 points to 17,277, BSE bankex falls 530 points to 19,875.
11: 00 am: Rupee opened 13 paise lower at 75.73 per dollar against previous close of 75.60.
10: 35 am: Aviation sector stocks such as SpiceJet and InterGlobe Aviation rose up to 5% in trade today ahead of launch of domestic flight operations partially on May 25. While SpiceJet share hit upper circuit of 5% to Rs 45.05 in early trade, InterGlobe Aviation share price gained up to 3.86% to Rs 1,016 on BSE.
10: 25 am: Sensex falls 300 points to 30,626, Nifty down 100 points to 9,011.
10: 15 am: Repo rate cut by 40 bps to 4%, reverse repo rate reduced to 3.35%.
10: 00 am: Banking stocks trading lower as RBI governor Shaktikanta Das is speaking at a press conference. BSE bankex is down 100 points to 20,308. SBI is the only gainer rising 1.09% to Rs 153.60 on the index
9: 50 am : RIL stock trading 0.58% higher at Rs 1,447 on BSE. Reliance Industries said KKR would invest Rs 11,367 crore into Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
9:40 am: Reserve Bank of India Governor Shaktikanta Das will address the media at 10 am today. The address comes ahead of the RBI's monetary policy meet scheduled to take place between June 3-5.
9:31 am : Indices turn green. Sensex gains 45 points, Nifty rises 20 points.9: 21 am : Of 30 Sensex stocks, 22 were trading in the red.
9: 20 am : Infosys, SBI and Tech Mahindra were top Sensex gainers rising up to 1.90%.
9: 15 am: Sensex opens 110 points lower at 30,822 and Nifty falls 39 points to 9,067.
9: 10 am : Stocks closed broadly lower on Wall Street Thursday as investors weighed more data showing the economic damage being caused by the coronavirus pandemic and another flareup in tensions between the USand China. The S&P 500 slid 23.10 points to 2,948.51. The Dow Jones Industrial Average fell 101.78 points, or 0.4%, to 24,474.12. The Nasdaq composite lost 90.90 points, or 1%, to 9,284.88.