Markets end down in a trade up and down while RBI surprises with the status quo

MUMBAI: benchmarks sensex and Nifty closed lower in topsy-turvy trade on Thursday after the Reserve Bank surprised with its decision to hold key policy rates. At the closing bell, the 30-share BSE gauge sensex was lower by 70.70 points or 0.17 per cent at 40,779.59. The index swung between losses and gains after the central bank kept the rates unchanged.

The NSE Nifty of 50 scrip resolved the day with a loss of 24.80 points or 0.21 percent at 12,018.40.

On the sensex chart, Bharti Airtel, Tata Steel, IndusInd Bank, HeroMoto Corp and Tata Motors were among the major laggards.

On the other hand, TCS, ITC, L&T, Infosys and Tech Mahindra led the gains.

Sectorially, the metal index fell further, followed by basic materials and energy indexes.

Indices of capital goods, IT and technology rose.

The RBI unexpectedly kept the reference interest rates unchanged due to concerns that general inflation would violate its medium-term target.

After five consecutive interest rate cuts this year, the six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das voted unanimously to keep the key repo rate at 5.15 percent and the Repo repo rate at 4.90 percent.

Bankers and economists widely expected the central bank to reduce rates for the sixth time to support a decelerating economy, whose growth rate was further reduced, to a minimum of six years of 4.5% in the September quarter, since 7% of the previous year.