Profit booking subdues equities; banking stocks sink

Profit booking subdues equities; banking stocks sink

Mumbai, August 6, 2021

Profit booking subdued India's key equity indices during the morning trade session on Friday.

Accordingly, India's benchmark indices traded deep in the red ended right after the RBI MPC resolution was released.

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

It was widely expected that MPC would hold rates and the accommodative stance.

Besides, global cues remained mixed.

On the domestic front, the two indices snapped their three days' positive momentum and witnessed profit booking, despite the RBI maintaining the policy stance as ‘Accommodative'.

Consequently, the S&P BSE Sensex at 10.55 a.m. traded at 54,341.16, lower by 151.68 points, or 0.28 per cent, from its previous close.

Similarly, the Nifty50 of the National Stock Exchange traded at 16,256.40, down by 38.20 points, or 0.23 per cent, from its previous close.

"The Indian benchmark is trading with a small negativity after 15300. We have observed a lackluster movement after continuous positivity in the market. RBI policy has no major impact on the market as the policy came on expected lines of the investors that there will be no change in the repo rate," said Gaurav Garg, Head of Research at CapitalVia Global Research.

"There is no change in the growth rate as well despite of the inflation concerns in the market which can give boost to the confidence of the investors in the recovery of the economy. Our research suggests 16,200 will be an important support level in the market for the market to remain positive in the short term."

IANS

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