The Reserve Bank of India's monetary policy committee lowered its repurchase rate to 6.0%, as predicted by economists polled by The Wall Street Journal.
"The market was optimistic about a cut and a 25 basis point cut is on expected lines and I am expecting two more cuts of 25 basis points each this year".
Reserve NBank of India reduces repo rate from 6.25 percent to 6 percent. Dealers said that custodian banks were seen selling dollars in favour of the rupee throughout the day, likely on behalf of their foreign investor clientele.
In share markets, the broader NSE index closed down 0.33 percent, while the benchmark BSE index ended 0.30 percent lower.
Meanwhile, Nifty was trading at 10,0071, down by 43 points and Sensex was trading at 32,456 level, down by 119 points post lunch hour followed by the RBI's monetary policy decision. YES Bank has cut its 2017/18 average inflation projection to 3.5% from 4 percent.
Kriti Sanon responds to Bhairavi Goswami's body shaming tweet
KRK, however, shared this video and wrote, "Ye Dekho Kiriti Bechari, Raabta Ke flop Hone Ke Baad, mentally disturb Ho Gayee hai!". "Even college students look better", she had written about Kriti. "No headlight, no bumper Even college students look better".
The central bank attributed its prediction on factors such as planned pay hikes for government employees, a recovery in food prices, and the impact on prices from the launch of a national goods and services tax on July 1. "There is no indication of future rate cuts", said a dealer at a foreign bank.
Four members of the committee voted to cut rates by 25 bps, while one voted for a 50 bps cut and one voted to leave rates unchanged.
Economists say they expect the central bank to cut by another 0.25 percentage point in the coming year.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25%.
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