Stocks slump after RBI holds rates, lowers growth forecast

Mumbai, Dec 7 (IANS) Indian equity markets slumped on Wednesday after the Reserve Bank of India (RBI) decided to keep its key lending rates unchanged in its fifth bi-monthly monetary policy of 2016-17.

Besides, investors' sentiments were subdued as the RBI lowered the forecast for India's growth to 7.1 per cent from an earlier 7.6 per cent.

The key Indian indices provisionally closed the day's trade with losses of around half a per cent each, as stocks of healthcare, banking and capital goods witnessed heavy selling pressure.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 35.20 points or 0.43 per cent to 8,107.95 points.

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,456.21 points, provisionally closed at 26,236.87 points (at 3.30 p.m.) -- down 155.89 points or 0.59 per cent from the previous close at 26,392.76 points.

The Sensex touched a high of 26,540.83 points and a low of 26,164.82 points during the intra-day trade.

The BSE market breadth was tilted in favour of the bears -- with 1,508 declines and 1,099 advances.

On Tuesday, the equity markets closed on a flat note as profit booking and caution ahead of key global events capped gains.

The barometer index was up 43.66 points or 0.17 per cent, while the NSE Nifty rose by 14.40 points or 0.18 per cent.

--IANS

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