Mumbai: The equity markets extended their slide for the second consecutive trading session as profit booking continued on the domestic bourses in the absence of any positive triggers that could lift investor sentiments. A private business survey showing a drop in India’s services activities for the first time in last thirteen months also raised concerns about the pace of recovery in domestic economy.
After opening the day on a negative note, the Sensex slipped 351.18 points or 1.29 per cent to end the trading session at 26,837.20 while the Nifty shed 101.35 points or 1.23 per cent to close the day at 8135.10. The investor sentiments were also weighed down due to lower than expected corporate earnings growth, forecast about a deficient monsoon and fear about a spike in domestic inflation that could limit the RBI’s ability to further cut interest rate in coming months.
“RBI’s monetary policy was one major event the markets waited for. While a 25 basis point cut was expected the RBI’s outlook on inflation and growth surprised market participants. The markets are currently seeing profit booking as there are no major events lined up,” said Udaya Narayan Dubey, VP, institutional desk at R.K.Global.
