Daily Big Picture : RBI Cuts Rate by 25bps; Nifty Adds Distribution Day

Today’s Action

Nifty, -1.5%; Sensex, -1.4%; Model Portfolio, -2.2%; Nifty Midcap, -1.7%; Smallcap, -1.9%.

Daily Market Review

Market Status: Confirmed Uptrend

Today, Nifty breached 12,000 mark and added a distribution day (count increased to two). It was down 1.5% on high volume. Sharp selling was seen in Nifty Midcap and Smallcap as well. Nifty was dragged by the Banks. The PSU Bank index was down more than 5%, whereas private banks were down 2.2%. All the sectoral indices closed in the red.

RBI cuts the rate by 25bps to 5.75% during market hours. The selling pressure intensified after the rate cut decision and comments on growth. MPC, in its statement, raised concern over a sharp slowdown in investment activity along with a continuing moderation in private consumption growth. The GDP growth forecast for FY20 is reduced to 7% from 7.2%. MPC has changed policy stance from ‘neutral’ to ‘accommodative.’

The advance-decline ratio is skewed toward decliners. Of the 2,096 stocks traded on the NSE, 457 advanced, 1,310 declined, and 329 remained unchanged.

Key News

Dewan Housing Finance: The Company has defaulted on interest payments on its bonds due on Tuesday. The default was more than Rs 1,000 crore. The stock is down 16%.

Natco Pharma: The U.S. FDA has made nine observations after the completion of an inspection at Kothur plant in Telangana. None out of the nine were repeat observations.  The stock is down 0.4%

Leaders Up on Volume: Info Edge (India) (+2.3%), Titan Company (+1.7%), and Dcb Bank (+1.6%)

Leaders Down on Volume: Icici Lombard General Ins Co (-5.7%), Karnataka Bank (-5.7%), and Kalpataru Power Tnsm. (-3.9%).

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