Live Stock Tips Market News; RBI cuts repo rate by 25 bps

The Indian market fell more than 1 percent in noon trade, dragged by banks after the Reserve Bank of India cut repo rate and statutory liquidity ratio. The Reserve Bank of India slashed repo rate (at which banks borrow money from the RBI) by 25 basis points but kept cash reserve ratio and statutory liquidity ratio unchanged. For more visit our site at www.capitalheight.com or please call our 24/7 Customer Care Support us at +91 9993066624, 0731-6615050.
=====================================================

The Reserve Bank of India cut its policy interest rate by a quarter percentage point on Tuesday, reducing it to a more than five-year low. It also reduced the cash proportion of daily reserve requirements that banks must keep with it, while pledging to inject more long-term liquidity. Shaktikanta Das, economic affairs secretary in the finance ministry, said the central bank's move on interest rates will help in transforming India into a low-cost economy.

The Reserve Bank of India (RBI) today heard the government's clarion call, cutting its policy repo rate by 25 basis points to bring it down to 6.50 percent at the first bi-monthly monetary policy meeting of the fiscal year. As expected, the RBI said it would maintain an 'accommodative stance' on monetary policy, meaning it was open to more rate cuts in future depending on macroeconomic conditions. Rate sensitive bank, realty and automobile stocks continue to trade weak.
The Indian market has already discounted this move by the central bank, and was looking for something more from the RBI. Perhaps, a 50-basis point cut in rate might have lifted sentiment and triggered some hectic buying in these sectors. With market giving a thumbs down to the central bank's monetary policy, at least for now, stocks have tumbled this morning, dragging the benchmark indices Sensex and the Nifty50 deep down in the red.