Market benchmark BSE Sensex closed lower by 131 points, or 0.44 per cent, in volatile trade on Friday, cutting short its three-day winning run because of the deepening growth concerns and a less-than-expected moratorium on loans announced by the RBI in its monetary policy.
Stock markets had rallied around 4 per cent in opening trade in line with firm global markets and ahead of the RBI governor’s address. However, stocks lost steam after the policy announcement with the benchmark indices paring sharp gains.
The 30-share Sensex ended 131.18 points lower at 29815.59. It hit a high of 31126.03 and a low of 29346.99 in day trade. The broad-based NSE Nifty managed to end with gains, closing higher by 18.80 points, or 0.22 per cent, at 8660.25 as energy, FMCG and select banking stocks advanced. On a weekly basis, both the indices closed in the red, marking their sixth week of losses.
“In such uncertain times, instead of fresh funds entities want to save their skin, the RBI’s relaxation of only three months instead of six for a moratorium on interest on loans and working capital has disappointed many,” Jimeet Modi, CEO of Samco Securities, said.