Markets snap five-day rally; settle marginally lower in highly volatile trade after RBI policy
The Hindu
Sensex and Nifty end lower after RBI keeps rates unchanged, cuts GDP forecast; market remains cautious but optimistic.
Benchmark equity indices Sensex and Nifty ended marginally lower in a highly volatile trade on Friday (December 6, 2024), snapping their five-day rally, after the Reserve Bank of India kept the policy rate unchanged but sharply cut the FY25 GDP growth forecast.
After oscillating between highs and lows during the day, the 30-share BSE benchmark Sensex declined 56.74 points, or 0.07% to finally settle at 81,709.12. Intra-day, it gyrated 419.72 points, hitting a high of 81,925.91 and a low of 81,506.19.
In the past five trading days, the BSE benchmark jumped 2,722.12 points, or 3.44%.
The NSE Nifty dipped 30.60 points, or 0.12%, to settle at 24,677.80.
The Reserve Bank of India on Friday (December 6, 2024) kept its key interest rate unchanged, citing inflation risks, but cut the Cash Reserve Ratio that banks are required to park with the central bank, boosting money with lenders to support a slowing economy.
With India's GDP seeing a sharper-than-anticipated dip in the July-September period to 5.4% — its slowest pace in seven quarters — inflation on the uptick and rupee under pressure, the Reserve Bank of India (RBI) had few choices to make.
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