Rate cut fails to lift markets

FII Outflows, Too, Sour The Mood

- KISHOR KADAM

EQUITY BENCHMARKS SENSEX and Nifty ended lower on Friday as the 25-bps rate cut—the first in nearly five years—failed to excite investors, who were expecting more measures from the central bank to boost liquidity. They were also not enthused by the moderate growth projections for the next fiscal and the 'neutral' stance taken by the monetary policy committee.

The Sensex declined 197.97 points, or 0.25%, to close at 77,860.19 amid extreme volatility of more than 800 points. The Nifty fell 43.40 points, or 0.18%, to 23,559.95. During intra-day trading, the Sensex and Nifty dropped 0.75% and 0.68%, respectively.