1. Indices Snap 5-Day Rally:
– Sensex closed 56.74 points lower at 81,709.12
– Nifty dropped 30.60 points to end at 24,677.80
2. RBI Policy Announcement:
– RBI slashed cash reserve ratio or CRR by 50 bps to 4%, releasing ₹1.16 lakh crore liquidity into the banking system
– Policy rates unchanged for the 11th time.
– GDP growth forecast slashed to 6.6% from 7.2% for FY24.
3. Sectoral Performance:
– Auto sector outperformed; Tata Motors (+3.2%) and Bajaj Auto (+2.3%) led the gains.
– Financial stocks rallied earlier but gains fizzled out by the session end.
4. Key Stock Movements:
– Axis Bank and Maruti Suzuki ranked among the top five Nifty 50 gainers.
5. Market Sentiment:
Vinod Nair, Head of Research at Geojit Financial Services, noted that while benchmark indices ended flat, broader markets showed optimism as the RBI addressed slowing growth and persistent inflation.
6. Global Cues:
– Asian shares were mixed; Chinese markets rallied over 1%, while Seoul fell 1% amid political uncertainty.
– Investors awaited U.S. payrolls data to assess Fed rate cut prospects.
7. Rupee
-The Indian rupee gained on Friday, closing at 84.6875 against the U.S. dollar on the back of a softer dollar and after the Indian central bank kept policy rates unchanged.
