Sensex extends losses, Nifty also slides
Key equity indices opened on a weaker note extending losses on Thursday. The 30-share BSE Sensex opened with a loss of 47.14 points on 31,750.73. The 50-share NSE Nifty lost 36.80 points to begin trading on 9,872.85 on Thursday's opening session.
Indices kept slipping with Sensex touching low of 31,637.79. Both indices were trading below new psychological marks. Nifty also failed to regain the 9,900-mark. The markets that were positive before the RBI's monetary council announced key rate cuts, turned volatile since the announcement.
Analysts believe that the tweak in interest rates was already anticipated and factored in by investors. Plus investors, according to analysts, were disappointed as the central bank maintained its neutral stance.
Sebi's crackdown on 331 shell companies and its trading also came as a shock to investors. Eicher Motors, ONGC, Tata Power and SBI fell up to 1 per cent while Tata Motors was down 4 per cent.
Nifty Bank was down 0.4 per cent. Nifty Midcap lost 0.7 percent as about two shares declined for every share rising on the NSE. Idea Cellular Ltd rose 2 per cent to Rs 92.55 after huge block deal. The rupee was trading at 63.97 against the US dollar which was 0.20 per cent down from its Tuesday's close of 63.84.