Late Week Nervousness
Significant events during the week. Downward pressure despite repo rate cut.
Week with a downward pressure where it gave up early gains. Nifty lost 0.44% last week (compared to last Friday – 31st May 2019). Downward movement has been broad-based with mid cap and small cap also losing steam. Among sectors, auto (up 0.20%), fmcg (up 0.41%) and IT (up 2.18%) have been gainers while significant downtrend was seen in Pharma, Realty and Banks.
Key developments
– DHFL technically defaulted on NCD coupon payment of INR 1160 crore, leading to markdown by fund houses holding these instruments
– RBI reduced repo rate by 25 bps to 5.75% and also lowered growth target to 7.00% from existing 7.20%
– RBI waived RTGS and NEFT charges to promote digital transactions. It also set up a panel to review ATM charges and fees levied by banks
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