Equity market's thumbs down to rate cut, Sensex slips 300 points

Mumbai, May 22
The Reserve Bank of India's (RBI) repo rate cut and other liquidity measures failed to cheer the stock market as the BSE Sensex fell over 300 points on Friday afternoon.

The central bank has reduced the repo rate by 40 basis points to 4 per cent, which seemed not enough to boost the market sentiments.

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Further, giving a bleak outlook for the Indian economy, RBI Governor Shaktikanta Das said that the country's GDP growth for the financial year 2020-21 is likely to be negative although there may be some pickup in growth impulses in the second half of the year.

This negative outlook has weighed on the investor sentiments, analyst said.

At 12.30 p.m., Sensex was trading at 30,620.17, lower by 312.73 points or 1.01 per cent from the previous close of 30,932.90.

It had opened at 30,822.78 and has so far touched an intra-day high of 31,107.91 and a low of 30,474.88 points.

The Nifty50 on the National Stock Exchange (NSE) was trading at 9,020.90, lower by 85.35 points or 0.94 per cent from the previous close.