New Delhi | Jagran Business Desk: Following a strong start, domestic benchmark indices on Thursday ended on a flat note amid mixed global cues. The 30-share BSE Sensex closed at 55,702.23, 33.30 points or 0.060 per cent higher, while the Nifty rose by 5.05 points or 0.030 per cent to end at 16,682.65.
Tech Mahindra was the top gainer, rising by 4.19 per cent, followed by Infosys, HCL Tech, Tata Steel, Wipro, ITC, HDFC, TCS, Kotak Mahindra Bank, ICICI Bank, Mahindra and Mahindra, NTPC, State Bank of India (SBI), and Maruti Suzuki India.
Meanwhile, IndusInd Bank was the top loser, followed by Sun Pharma, Nestle India, Ultratech Cement, Reliance, Bajaj Finsv, Power Grid, Titan, Axis Bank, Bajaj Finance, Asian Paints, Dr Reddy's, HDFC Bank, Hindustan Unilever, L&T, and Bharti Airtel.
This comes a day after the Sensex and Nifty plummeted by over 1,300 and 390 points respectively after the Reserve Bank of India's (RBI) decision to hike the repo rate by 50 basis points (bps) to 4.40 per cent to control inflation that has remained stubbornly above the target of 6 per cent for the last three months.
Besides the repo rate, the cash reserve ratio (CRR) was also increased by the central bank following an unscheduled meet by 50 bps to 4.5 per cent. This, RBI Governor Shaktikanta Das said, will be effective from May 21.
"The MPC's decision... is a surprise since it came on the LIC IPO opening date. MPC's proactive move is justified from the perspective of inflation management, but the timing leaves a lot to be desired," news agency PTI quoted VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, as saying.
"The above 1,000 point crash in Sensex has soured the sentiments on the opening day of India's largest IPO."
Similarly, Julius Baer India Managing Director (Senior Advisor) Unmesh Kulkarni said the RBI's decision comes amid concerns it might have under-estimated inflation, and is behind the curve in changing its monetary policy stance.
"The markets have obviously been taken by surprise, and the 10-year benchmark g-sec yield jumped intra-day to 7.40 per cent. Given the enhanced government borrowing calendar this year, RBI has a tough job at hand, to manage the market's expectations of yields while seeing the weekly auctions through in a non-disruptive manner," PTI quoted Kulkarni as saying.
Posted By: Aalok Sensharma