Sensex, Nifty close in red after RBI keeps rate unchanged

Benchmark Sensex retreated from its record high to end 47 points lower at 29,927.34 on Thursday after the Reserve Bank left the key policy rate unchanged. The 30-share BSE Sensex opened 27.35 points, or 0.09 per cent, down at 29946.89, while the 50-share NSE Nifty index opened 19.35 points, or 0.21 per cent, down at 9,245.80. The 30-share index crossed the 30,000-mark by surging 97.26 points, or 0.32%, to trade at 30,007.48, a level last seen on 4 March 2015 when it hit an intra-day high of 30,024.74.

Rate sensitive stocks such as banks, real estate stocks rallied after the Monetary Policy Committee (MPC) chose to keep the policy rates and cash reserve ratio (CRR) unchanged.

The Reserve Bank also narrowed policy rate corridor, due to liquidity flush, by increasing marginal standing facility rate and bank rate to 6.50 per cent.

The central bank also raised the growth forecast for the current fiscal to 7.4 per cent from 6.7 per cent in 2016-17.

China's Shanghai Composite index was, however, quoting in green, up by 0.16 per cent. "With no major surprises from RBI, markets stabilised, but will await the NPA resolution measures that are widely expected shortly".

Foreign institutional investors (FIIs) were net buyers in the equity segment worth Rs 1.42 billion on both BSE, NSE and MCX-SX on April 6, as per provisional data available at the BSE.

A total of 895 shares ended with losses while 791 finished with gains while 64 ruled steady. Among rate sensitive scrips, ICICI Bank fell 0.93 per cent to Rs 282.20, while state-run SBI was down 0.29 per cent at Rs 295.85.

In the broader markets, BSE Midcap gained 0.2 per cent while BSE Smallcap index slipped 0.2 per cent. FMCG and Telecom indices declined 0.8 per cent and 0.6 per cent respectively. In the Asian region, Japan's Nikkei ended 1.40% lower, while Hong Kong's Hang Seng shed 0.52%.

Frankfurt's DAX 30 fell 0.41 per cent while Paris CAC 40 was down 0.07 per cent in their early deals.