Stock market falls further: Sensex down 792 pts post RBI move
RBI estimated that the headline inflation may accelerate to 4.5 per cent by March 2019 quarter with upside risks.�
Domestic equity market witnessed a sudden selling pressure after the Reserve Bank of India kept rate unchanged at 6.50 per cent.?
The 30-share index settled the day 792.17 points, or 2.25 per cent, lower at 34,376.99. Its NSE counterpart Nifty ended at 10,316.45, down 282.80 points, or 2.67 per cent.?
The rupee also breached the 74-mark against the dollar for the first time after the monetary policy outcome.?
RBI estimated that the headline inflation may accelerate to 4.5 per cent by March 2019 quarter with upside risks.?
Abhimanyu Sofat, Head of Research, IIFL Securities said, ???RBI policy announcement of keeping rates unchanged is a surprise; this may lead to a negative impact especially the currency market. With the US yield, inching up to 3.25 per cent it was expected the RBI would increase the rates to protect against inflation rise. We believe because of the policy one should continue to focus on export-oriented and import substitution stories from both the service and manufacturing sector. The presumption of lower inflation due to lower food prices may be a bit in coherent as core inflation may rise due to the depreciating currency. If the crude prices continue to surge then RBI may have to come with frontloaded rate increases.????
