Sensex trades flat post RBI's decision to keep rates unchanged

MUMBAI: The Reserve Bank of India's decision to the policy rates unchanged failed to cheer the stock market as the key Indian equity shed gains and traded flat post the RBI Governor's announcement.

Around 10.50 a.m., Sensex was trading at 52,182.23, lower by 50.2 points or 0.10 per cent from its previous close of 52,232.43.

It opened at 52,367.52 and has touched an intra-day high of 52,389.02 and low of 52,154.41 points.

The Nifty50 on the National Stock Exchange was trading at 15,679.00, lower by 11.35 points or 0.07 per cent from its previous close.

The Monetary Policy Committee (MPC) of RBI voted to maintain the repo rate, or short-term lending rate, for commercial banks at 4 per cent.

Likewise, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent. It was widely expected that MPC would hold rates and the accommodative stance.

Further, another development which subdued the investor sentiments was the RBI's downward revision of the growth forecast for the current financial year to 9.5 per cent from the previous estimate of 10.5 per cent. Amid the severe second wave of Covid-19 and the lockdowns across states, the RBI has sharply reduced the growth estimate for the April-June quarter to 18.5 per cent. The previous estimate for the period was 26.2 per cent. (IANS)

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