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Sensex plunges 239 pts; banking takes hit

Stock markets moved down for the second session on Thursday as the Sensex ended with a loss of 239 points after banking, realty and auto stocks struggled owing to concerns over direction of the monetary policy.

PTI
Mumbai

The Reserve Bank on Wednesday lowered the repo rate by 25 basis points to 6 per cent and retained its neutral policy stance, but pegged its future action to more economic data.
Interest rate sensitive stocks -- banking, realty and auto -- continued their slide as the policy action failed to move investors.
On a closing basis, the 30-share index traded down 238.86 points, or 0.74 per cent, at 32,237.88 after hitting a low of 32,194.58. The gauge had lost 98.43 points yesterday.
The Nifty slumped by 67.85 points, or 0.67 per cent, but managed to close above the 10,000-mark at 10,013.65 after touching a low of 9,998.25. Lupin took the biggest blow plunging 3.80 per cent, followed by Coal India 3.36%.
Lenders such as HDFC, HDFC Bank and ICICI Bank too had a tough time, causing the maximum damage. State-owned PNB plunged 5.98 per cent and Canara Bank 3.27 per cent while country's largest lender SBI lost 2.24 per cent.
The rupee, which strengthened against the dollar to trade at a fresh two-year high, failed to lift sentiment.
A monthly survey released today showed that July services PMI fell to its lowest level in nearly four years following implementation of GST, which made participants more
anxious.

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Loans to be cheaper after RBI cuts rates

Rate shrinks by 0.25% to lowest in six years; GDP forecast at 7.3%

PTI
Published Aug 3, 2017, 4:06 AM IST
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Mumbai After a 10-month pause, the Reserve Bank on Wednesday cut benchmark lending rate by 0.25 per cent to over 6-year low citing reduction in inflation risk, a move that will lower interest on home, auto and corporate loans. The repo rate, at which RBI lends to banks, is now down to 6 per cent, the lowest in more than six-and-a-half years. The reverse repo, at which RBI borrows from banks, has been readjusted accordingly by similar percentage point to 5.75 per cent. The…

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