NEW DELHI: The BSE Sensex fell on sustained selling by funds and investors after RBI took a cautious stance on economic recovery coupled with forecast of a deficient monsoon.
BSE Sensex falls over 250 pts; Selling pressure seen in banking, auto, pharma, consumer durable stocks
The benchmark BSE Sensex cracked the 27,000-mark today by falling 351 points as investors trimmed positions in realty and FMCG stocks as hopes of another rate cut this year took a hit on fears of a drought in the country.
Market took further jolt after services sector activity contracted for the first time in 13 months in May, largely due to decline in new order flows amid competitive pressure.
In last two sessions, the Sensex has lost 1,011.79 points.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Market is in a backtrack post the disappointment from policy meet. As the policy outlook provides no scope to have further cut in the medium-term, interest sensitive stocks like banks and industrials are consolidating down. Now, trigger is in the hands of Government to provide additional support to the business confidence and outlook.
The Met department has projected monsoon this year to be “deficient”, which has triggered fears of a drought.
The RBI yesterday lowered borrowing costs by 0.25 per cent but linked further reductions to the monsoon.
Reacting to developments, NSE Nifty ended with a loss of 25.25 points at 8,102.10 — its weakest close since December 17.
