Indian benchmark indices BSE Sensex and NSE’s Nifty 50 declined on Wednesday following global cues and investor caution ahead of the Reserve Bank of India’s monetary policy decision.
The Sensex closed 249.90 points down at 35,884.41 and the Nifty 50 ended 84.55 points at 10,784.95. The RBI later announced that the key repo rate will remain unchanged at 6.5% citing benign inflation outlook and improved investment activity.
The central bank also said that new norms for pricing of retail loans, including home and auto loans, will be applicable on new loans extended from April 1. In a move which will affect the home loan rates and auto loan rates, the RBI has mandated the use of external benchmarks for their floating rate loans instead of the present system of internal benchmarks.
Asian stocks fell following losses on Wall Street overnight after US threatened more tariffs. Oil prices fell 1%,