Nifty ends flat as RBI keeps rate unchanged
- Author: Delia Davidson Apr 07, 2017,
Apr 07, 2017, 2:23
Mumbai: Domestic investors were cautious ahead of RBI's monetary policy meet as the market benchmark Sensex retreated from record close by falling about 122 points in early trade on Thursday while Asian cues were muted on overnight losses in the US.
It was trading at 9,229.25 points before the announcement.
Led by RIL and auto stocks, the BSE 30-share index hit a high of 30,007.48 in intra-day trade, but slipped to 29,817.69 before settling at 29,974.24, up 64.02 points or 0.21 per cent.
However, in pre-market opening, Sensex touched 29,996-mark and Nifty a new high of 9,264-level.
It is largely expected that the RBI will not bring any change in the policy repo rate though it may announce some steps to mop-up the excess liquidity floating in the banking system. RBI however increased the reverse repo rate - which it pays to banks for parking funds with it - by 0.25% to 6%, narrowing the policy rate corridor.
The central bank also raised the growth forecast for the current fiscal to 7.4 per cent from 6.7 per cent in 2016-17.
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The BSE realty index emerged the top sectoral gainer, rising 2% as shares of DLF, Unitech, Prestige Estates, Oberoi Realty, Sobha Ltd and Godrej Properties rose by up to 4.48%.
In contrast, the BSE market breadth was marginally bullish - with 1,476 advances and 1,403 declines. On the other hand, realty index was up 0.88 per cent, oil & gas 0.48 per cent, IT 0.16 per cent and TECk 0.01 per cent.
Besides, profit booking after Wednesday's gains, coupled with negative global cues, hampered the upward movement of the key indices.
On Thursday, Asian indices were showing a negative trend.
The US Dow Jones Industrial Average ended 0.20 per cent lower in yesterday's trade.
Frankfurt's DAX 30 fell 0.41 per cent while Paris CAC 40 was down 0.07 per cent in their early deals.