Indian shares ended lower on Friday as the Reserve Bank of India (RBI) kept its key interest rates unchanged, assured ample liquidity and pledged to continue with its accommodative stance as long as necessary, as widely expected.
Rate-sensitive banks and financials succumbed to selling pressure as the central bank lowered its estimate for economic growth to 9.5 percent for 2021-2022 from earlier projection of 10.5 percent, citing the impact of the second COVID-19 wave.
The growth forecast for Q2 has also been cut to 7.9 percent versus 8.3 percent forecast earlier.
With regard to inflation, RBI Governor Shaktikanta Das said that retail inflation is likely to be 5.1 percent during the current fiscal.
The benchmark 30-share BSE Sensex ended the session down 132.38 points, or 0.25 percent, at 52,100.05, while the broader NSE Nifty index ended down 20.10 points, or 0.13 percent, at 15,670.25.
Axis Bank, HDFC Bank, Hindalco, SBI and Nestle India fell 1-2 percent in the Nifty pack, while Tata Motors jumped 3.4 percent after raising $425 million through unsecured offshore bonds.
Grasim rallied 3.3 percent on expectations of improved performance once COVID-led restrictions are reversed.
Bharat Forge soared 7.8 percent to hit a record high after the auto components maker returned to profit in the March quarter.
Sensex, Nifty End Lower On Growth Concerns
2021-06-04 11:01:22
