After the announcement of RBI Policy on the repo rate, the Nifty Bank index slumped 733 points at the sharp closing time as as selling pressure seen in Federal Bank, ICICI Bank, HDFC Bank and Kotak Bank.

Market Close: The benchmark Sensex slipped 422 points to 37673-mark and NSE Nifty slumped 151 points at 11163-mark. Out of the 12 components in the Nifty bank index, only the IndusInd Bank and IDFC First Bank surged, and the rest all bank names ended in the red.

The Reserve Bank of India (RBI) on Friday, 4-October, slashed the repo-rate for the fifth time in a row this year to 5.15pc from the existing 5.4pc in a bid to support government steps for pushing economic growth under inflation. The monetary policy committee (MPC) headed by Governor Shaktikanta Das announced the decision after a 3-day meeting.

The RBI had cut the key lending rate previously four times, ie on 7th February, 4th April, 6th June and 7th August this year, to infuse liquidity and boost economic growth.

What is Repo Rate?:: The Repo-rate is the rate at which the Central-Bank or Reserve Bank (RBI) lends money to commercial banks. If a repo-rate is reduced, the Banks will be able to cut interest rates for their consumers and reduces equal monthly installments accordingly on loans such as home loans, personal loans & car loans.

Indian Economy: As per govt data, India’s economy grew by only 6.8pc in 2018-19, Gross Domestic Product or GDP growth slumped lower to 5pc in the April – June quarter as against an 8pc in the year-on-year due to weak household spending, muted corporate investments, and crippling slowdown construction and manufacturing activity.

A considerable decrease in the repo-rate and bank lending rates are the required factors to boost manufacturing and domestic demand for economic growth, as per the Industry leaders’ point of view. All nifty future trading tips and Stock Tips visit our website.

Stock Market Today: After the announcement of RBI Policy on the repo rate, the Nifty Bank index slumped over 733 points at the sharp closing time as of 3.30 pm, as selling pressure seen in Federal Bank, ICICI Bank, HDFC Bank, and Kotak Bank. Out of the 12 components in the Nifty bank index, only the IndusInd Bank and IDFC First Bank surged. The benchmark Sensex slipped 422 points to 37673-mark and NSE Nifty slumped 151 points at 11163-mark. Broad-based selling pressure witnessed across sectors, except Nifty IT which rose 0.41% to close at 15,340.30.