The BSE benchmark Sensex today fell over 183 points in late morning trade led by weakness in banking sector stocks,as RBI failed to meet market expectations with just 0.25 per cent cut in short-term lending rate and no change in the cash reserve ratio.
The 30-share index,which opened in negative zone,fell further by 183.22 points,or 0.92 per cent to trade at 19,552.55 at 1130 hrs,after RBI left the CRR unchanged at 4
per cent and announced just 0.25 per cent cut in key interest rate to 7.25 per cent.
Sensex had rallied by 449.23 points in the previous three sessions.
Similarly,the National Stock Exchange Nifty index Nifty fell by 69.20 points,or 1.15 per cent,to 5,930.15.
The fall was mostly led by interest rate sensitive stocks such as banking after the Reserve Bank did not cut the cash reserve ratio (CRR),brokers said.
The BSE banking index fell by 1.67 per cent to 14,288.64 points as stocks of state-run State Bank of India fell 2.51 per cent to Rs 2,241.65,Canara Bank by 3.32 per cent to Rs 398.35,ICICI Bank by 1.96 per cent to Rs 1,148.45,HDFC Bank by 1.26 per cent to Rs 683.45 and Axis Bank by 1.77 per cent to Rs 1,489.75.
Indian stocks to watch – May 3
(Reuters): GLOBAL MARKETS ROUND UP
Nifty futures on the Singapore Exchange is 0.08 percent up while the MSCI-Asia Pacific index excluding Japan is 0.4 percent higher.
Asian shares rose on Friday after an interest rate cut by the European Central Bank added to hopes that more stimulus from yet another major central bank will help shore up the global economic recovery.
U.S. stocks closed about 1 percent higher on Thursday,led by tech shares,after weekly jobless claims figures pointed to improving labour market conditions a day before the closely watched monthly payroll report.
FACTORS TO WATCH
India’s central bank will announce its annual monetary policy statement for 2013/14 fiscal year that started in April. (0530 GMT)
Earnings of Ambuja Cements Ltd and ACC Ltd.
India central bank sees ‘very limited’ room to ease policy.
Indian cabinet clears IKEA’s 1.5 bln euro investment plan.
Adani Ports gets security clearance after three years from Home ministry to bid for projects.
India mulls emergency tariffs on some steel products.
Govt clears ETF for public units to push disinvestment.
Arunachal scraps power deal with Naveen Jindal group.
DLF to raise 15 bln rupees by divesting its non-core assets to pare debt
CCEA okays Andrew Yule financial restructuring plan.
Sebi fines RIL entity 110 mln rupees in insider trading case.
JP Morgan may pick up 8 bln rupees stake in Bhaskar Group’s Diliigent Power.
Ambani brothers to extend their corporate kinship in telecom,two more deals by mid-June.
Kingfisher lenders set to file Sarfaesi claim.
Mukesh’s Reliance Jio to rent 30,000 towers from Anil’s Reliance Infratel.