Sensex falls marginally, 10-year yield unchanged – Times of India


MUMBAI: The RBI’s decision to revise downward India’s economic growth for the current fiscal to 9.5% from 10.5% impacted investor sentiment on Dalal Street, but the negative sentiment was balanced out by the central bank’s unchanged inflation outlook and the liquidity support. As a result, the sensex on Friday closed 132 points lower at 52,100 with banking and financial services stocks mainly contributing to the day’s loss.
According to Gaurav Dua of Sharekhan, the RBI reaffirmed its commitment to support economic growth as long as necessary while ensuring inflation remains within the 2-6% target range. “The moderation in real GDP estimate to 9.5% from 10.5% to factor in the impact of the second wave of pandemic is also in line with expectations. No wonder, the bond yields have not reacted materially,” Dua said. “With quarterly results and RBI policy behind us, the focus would shift to pace of unlocking and vaccination domestically and global cues.”
In the government bond market, the benchmark 10-year yield closed at 6.02%, barely unchanged from its Thursday close. With nearly Rs 12,700-crore worth of bonds remaining unsold in the week’s auction, which was conducted on Thursday instead of on Friday due to the policy, the decisions were closely watched for any major move that could impact the government bond market. The central bank’s accommodative stance assured bond market players, dealers said.


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