Markets End on a Negative Note

Investors did not seem to be impacted by the RBI’s move as strong buying activity led the Indian indices to rise sharply above the dotted line during high noon. However, at the closing the benchmark index Sensex closed at 19435 down 67 points and the Nifty was down 29 points at 5831. The Nifty snapped its seven days winning streak on the back of profit booking in metal, technology, telecom, oil & gas and power. What was surprising is that financial, realty and select auto companies shares were on the buyers radar despite hike in the key rates by the RBI. The Reserve Bank of India (RBI) has increased repo rate (at which banks borrow from RBI for short term) by 25 bps to 6% and reverse repo rate (at which RBI borrows money from banks) by 50 bps to 5% to contain rising inflation. On the global front, the Hang Seng was down 34.19 points at 21691.45 whereas the Straits Times too closed in the red by 0.13 percent at 3067.11 and the Nikkei too was down by a marginal 7 points. Going forward, there could see some consolidation in the markets tomorrow.