Unveiling is third quarter monetary policy review, the Reserve Bank of India has cut repo rate by 25 basis points to this morning. The Cash Reserve Ratio has been reduced by 25 basis points to 4% resulting in an infusion of around Rs 18,000 crore into the banking system. GDP growth projection has been lowered to 5.5% from the earlier forecast of 5.8%.
The market, which rebounded into positive territory immediately after the rate cut announcement, has retreated slightly subsequently with investors turning cautious once again.
The BSE benchmark Sensex, which spurted to 20,185.92 from a low of 20,029.42, is currently up 21 points or 0.1% at 20,124.35. The Nifty index of the National Stock Exchange is up 18.65 points or 0.31% at 6093.45.
Bank and realty stocks came off their lows post rate cut announcement, but have given up some gains subsequently. Automobile stocks are a bit mixed. Metal, capital goods and information technology stocks are mostly subdued.
Axis Bank trades firm with a sharp gain of 4.2%. Jaiprakash Associates is up with a gain of 2.2%. Tata Power, Power Grid Corporation, Cipla, Sesa Goa and Hero Motocorp are up 1% - 1.2%. Kotak Bank, Bharti Airtel and Lupin are up with modest gains.
Wipro, HDFC Bank, BPCL, Mahindra & Mahindra, Hindustan Unilever, ONGC and Reliance Infrastructure are down 0.4% - 1.4%.