Markets end lower post RBI rate cut

Agencies mumbai

Equity benchmark indices Sensex and Nifty ended lower on Friday as the RBI's rate cut did not spring any major surprise for the markets and investors turned to profit-taking amid foreign fund outflows. Registering its third day of decline, the 30-share BSE benchmark Sensex dropped 197.97 points or 0.25 per cent to settle at 77,860.19, in a volatile trade. The NSE Nifty declined 43.40 points or 0.18 per cent to 23,559.95.

From the 30-share blue-chip pack, the stock of ITC dipped over 2 per cent after the diversified entity reported a 7.27 per cent decline in consolidated net profit to Rs 5,013.16 crore for the December quarter on account of subdued demand and sharp escalation in input costs.

"As the rate cut did not spring any major surprise, investors did not find anything interesting in the new RBI governor's comments which resulted in a steady bout of profit-taking in banking, oil & gas, FMCG and power stocks. The ongoing earnings have been mixed to subdued while relentless selling of domestic shares by the FIIs have prompted investors to maintain caution," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.