Sensex tanks 433 pts, Nifty ends below 11,200

Mumbai: Equity indices dropped over 400 points on Friday, after the Reserve Bank of India (RBI) cut interest rate for the fifth time in a row to almost a decade low, with a view to revive economic growth that hit a 6-year low of 5 per cent.

The 30-share BSE index ended 433.56 points or 1.14 per cent lower at 37,673.31, while the broader NSE Nifty closed 139.25 points or 1.23 per cent down at 11,174.75.

Major losers in the sensex pack included Kotak Bank, ICICI Bank, Tata Motors, HDFC Bank, Tata Steel, LT, and SBI with their stocks sliding as much as 3.46 per cent. However, TCS, Infosys, ONGC, Tech Mahindra, NTPC, HCL Tech, Hero MotoCorp and IndusInd Bank were the gainers with their shares rising up to 1.03 per cent.

On NSE, except for Nifty IT, all other sub-indices ended in red with Nifty Media, Bank, Private Bank, Financial Services falling as much as 3.58 per cent.

The Reserve Bank on Friday sharply cut its economic growth projection for this fiscal to 6.1 per cent from 6.9 per cent earlier, but expressed hope that the growth will recover in the second half of 2019-20. The central bank’s estimates come in the wake of GDP growth sliding to a six-year low of 5 per cent in the June quarter.

The Reserve Bank also reduced its economic growth projection sharply for this fiscal to 6.1 per cent from 6.9 per cent earlier, but expressed hope that the growth will recover in the second half of 2019-20.

Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 810.72 crore on Thursday, exchange data showed.

Brent futures, the global oil benchmark, rose 0.36 per cent to $57.92 per barrel.