Sensex tanks 516 points on Tuesday due to weak global cues took precedence over Reserve Bank of India’s rate cut by 25 bps which was in line with economists’ expectations. At the end, BSE has ended up at 24,884 points and the Nifty50 plunged 156 points to finish at 7,603.
The RBI also left the cash reserve ratio unchanged at 4%. However, the RBI The reverse repo has been raised by 25bps to 6%, narrowing the spread between the repo and reverse repo by 50 bps.
The central bank expects Consumer Price Inflation to ease to around 5% and economic growth of 7.6% in the current fiscal ending March 31, 2017.