6:00 PM Mumbai – Reserve Bank of India lowered rate in a surprise move only three days after the release of central government budget. Sweden-based Volvo sold its 4.7% stake in Eicher Motors. Adani Group plans to buy port and related assets from Essar Port.
In volatile trading, market indexes gyrated to a new intra-day high and turned down sharply and lost 3% from the peak and closed down 0.7%.
Market rally of more than 400 points was sparked by the unexpected move from the central bank. Though the rate cut was anticipated by traders after the release of financial budget of the central government, the move came sooner than expected, surprising the market.
Market indexes in the final hour failed to hold on to gains of the day 3% surge in the previous four sessions on the weakness in the banking sector.
The Reserve Bank of India unexpectedly lowered its benchmark repo rate 25 basis points to 7.5%.
Indian rupee eased 33 paisa to 62.25 against one dollar.
The Sensex Index dropped 213 or 0.7% to close at 29,380.73. The CNX Nifty slipped 73.60 or 0.8% to 8,922.65.
Gainers & Losers
Eicher Motors Limited
added 1% to ₹16,050.15 after the truck and heavy duty vehicles maker said Sweden-based Volvo sold its 4.7% stake in the company for ₹1,920 crore.
Essar Ports Limited
climbed 4.9% to ₹124.30 after the company said Adani Group plans to buy ports and related assets in the company.
Gulshan Polyols Limited
advanced 1.6% to ₹291 after the specialty chemical maker signed an agreement with the Orient Paper and Industries to set up a plant in Madhya Pradesh.
Larsen & Toubro Limited
fell 0.5% to ₹1,838.90 after the engineering infrastructure maker won an order worth ₹2,215 crore in the last two months.
Nitesh Estates Limited
soared 19.9% to ₹12.58 on speculation that the U.S.-based Goldman Sachs plans to invest ₹1,850 crore or $300 million in the company.
Usha Martin Limited
slid 0.4% to ₹28.55 after the steel company won Brinda & Sasai coal mine bid for ₹1,804 per metric ton.