“Though FY25 GDP growth forecast has improved, the RBI remains vigilant on inflation & banking liquidity.
The incomplete transmission of the cumulative 250 bps and the inflation ruling above the target level add uncertainty about the timing of the interest rate reduction.
The ripple effect was seen in the government 10 yr yield, which inched higher.
“A large pocket of the market slid into red like FMCG, banks, and auto.
FMCG was impacted more by weak Q3 result and downgrade in volume growth, in the near-term, due to weak rural demand,” said Vinod Nair, Head of Research, Geojit Financial Services.
Among the Sensex firms, ITC, Kotak Mahindra Bank, ICICI Bank, Nestle, Axis Bank, IndusInd Bank, UltraTech Cement, Bajaj Finance, Maruti and HDFC Bank were the major laggards.