Sensex, Nifty face volatile trends after RBI policy announcement

Both the Nifty and Sensex faced bouts of volatility between highs and lows. File
| Photo Credit: Reuters

Benchmark equity indices Sensex and Nifty turned highly volatile after the Reserve Bank of India’s monetary policy announcement.

Markets dipped 0.45% to 81514 at the Bombay Stock Exchange (BSE) as the RBI governor Shaktikanta Das announced the decision of the Monetary Policy Committee to keep the repo rate unchanged at 6.5%.

This pessimism, however, faded within minutes as the announcement to cut Cash Reserve Ratio to 4% restored the optimism bringing the markets near the day’s open of more than 81,800 points. Both the Nifty and Sensex faced bouts of volatility between highs and lows.

As of 11:47 a.m., the benchmark BSE Sensex was at 81,713, up 200 points from the day’s open.