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The Indian stock market experienced a significant downturn, with the Sensex closing at 78,041.59, down 1.49%, and the Nifty at 23,587.50, down 1.52%. All sectoral indices fell, particularly the realty index, which dropped by 4%, contributing to a market capitalization loss exceeding ₹19 lakh crore. This marked the largest decline in two years, with both Nifty and Sensex falling over 4%.
UBS has downgraded its target price for IndusInd Bank to ₹1,150 from ₹1,350, reflecting a neutral stance and a 5% cut in EPS for FY25/26. Similarly, Axis Bank and AU Small Finance Bank also saw target reductions. HDFC Bank, ICICI Bank, and Federal Bank remain top picks amid rising non-performing loan risks.Citi maintains a neutral call on Infosys with a target of ₹1,965, noting improvements in discretionary spending, particularly in the US financial services sector. Goldman Sachs favors Syngene and Neuland in the pharma sector while expressing caution on Divi’s, Gland, and Laurus.
Nifty and Sensex traded flat on December 6 as the RBI maintained the repo rate at 6.5% for the eleventh consecutive time, while cutting the CRR by 50 basis points to inject Rs 1.16 lakh crore into the system. PSU banks, auto, and FMCG stocks gained, with Bajaj Auto, Axis Bank, Titan Company, BPCL, and ITC leading the Nifty's top gainers. The market showed resilience amid a choppy session, with 2,076 shares advancing against 1,289 declining.
The Reserve Bank of India (RBI) will hold its Monetary Policy Committee meeting on December 6, with expectations that the repo rate will remain at 6.5%. Home loan interest rates and EMIs will stay unchanged if the status quo is maintained. Additionally, Axis Bank is introducing a redemption fee for EDGE Rewards and revising credit card charges, while AU Small Finance Bank is updating its reward point policy for the Ixigo AU credit card, prompting cardholders to review the new terms.
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