Sensex slumps over 400 points despite RBI rate cut, extends losses to 5th day
Live MintIndian stock market indices Sensex and Nifty fell sharply today, extending losses to the fifth day. The losses came despite the Reserve Bank of India cutting interest rates by 25 basis points, the central bank's fifth rate cut this year. The RBI maintained its "accommodative" stance and said it would keep that position "as long as it is necessary" to revive economic growth, while ensuring inflation remains within target. "Equity markets saw some correction as investors got cautious about declining asset quality in the banking sector, risk of weakening of demand after tepid data prints on auto sales, GST collections and core sector. RBI delivered 25 bps rate cut on Friday which however failed to live up to investor expectations and markets sell-off intensified post the announcement," said Sanjeev Zarbade of Kotak Securities.