Domestic shares declined after the Reserve Bank of India (RBI) lowered the GDP growth forecast for the current fiscal amid probability of El Nino effects on monsoon rains and uncertain global economic outlook. The central bank also cut its repo rate by 25 basis points to 6%. This is the second consecutive rate cut from RBI under new chief Shaktikanta Das, after a surprise rate cut in February.

The barometer index, the S&P BSE Sensex, fell 192.40 points or 0.49% to 38,684.72, as per the provisional closing data. The Nifty 50 index fell 45.95 points or 0.39% to 11,598, as per the provisional closing data.

Indices opened higher, but reversed trend in morning trade. After hitting a fresh intraday low, the indices trimmed losses in mid-morning trade. Indices bounced back amid high volatility in early afternoon trade. Barometers once again slipped into negative terrain in mid-afternoon trade.

Among secondary barometers, the BSE Mid-Cap index fell 0.14%. The BSE Small-Cap index fell 0.32%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1044 shares rose and 1464 shares fell. A total of 175 shares were unchanged.

Tata Motors (up 2.31%), Hero MotoCorp (up 2.03%), Bharti Airtel (up 1.71%), HDFC (up 1.40%), Asian Paints (up 1.37%) and Vedanta (up 0.97%), were the major Sensex gainers.

TCS (down 3.14%), Yes Bank (down 1.92%), HCL Technologies (down 1.53%), IndusInd Bank (down 1.41%), Reliance Industries (down 1.38%), Larsen & Toubro (down 0.87%) and ICICI Bank (down 0.82%), were the major Sensex losers.

Godrej Properties rose 2.81%. The company announced that it has entered into a joint venture with a renowned developer to develop a 4.25 acres sea-facing property in the prime suburban micro-market of Bandra West, Mumbai. The project will offer approximately 1 lakh square meters (approximately 1.1 million square feet) of saleable area and will be developed as a luxury residential project. The announcement was made after market hours yesterday, 3 April 2019.

Gujarat Gas rose 2.64% after the company received grant of authorization for city gas distribution networks. The announcement was made after market hours yesterday, 3 April 2019.

Gujarat Gas announced the acceptance of grant of authorisation for geographical area of Sirsa, Fatehabad and Mansa (Punjab) districts; Ujjain (except area already authorized) district, Dewas (except area already authorized) district and Indore (except area already authorized) district; Jhabua, Banswara, Ratlam and Dungarpur districts; Ferozepur, Faridkot and Sri Muktsar Sahib districts; Hoshiarpur and Gurdaspur districts; Jalore and Sirohi districts.

Meanwhile, RBI concluded its two-day Monetary Policy Committee (MPC) meeting today, 4 April 2019. On the basis of an assessment of the current and evolving macroeconomic situation, the MPC decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6% from 6.25% with immediate effect. 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%.

The MPC also decided to maintain the neutral monetary policy stance. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The RBI also lowered its GDP growth outlook for 2019-2020. RBI expects GDP growth at 7.2% for 2019-20, lower than its February projection of 7.4%. There are some signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods. The moderation of growth in the global economy might impact India's exports, RBI said. According to the National Oceanic and Atmospheric Administration (NOAA) of the US, El Niño conditions strengthened during February 2019, which may affect the prospects of a normal south west monsoon, it added.

On the economic front, the Nikkei India Services PMI eased in March 2019. At 52.0 in March, the seasonally adjusted Nikkei India Services Business Activity Index indicated expansion for the tenth straight month. Falling from 52.5 in February, however, the latest reading showed the slowest upturn since last September. A reading below 50 indicates contraction in activity, while a number above it signals expansion. The data was announced during trading hours today, 4 April 2019.

Overseas, European stocks traded lower Thursday. UK lawmakers approved a bill Wednesday that would force Prime Minister Theresa May to ask for a Brexit delay to prevent Britain from crashing out of the European Union on 12 April without a deal.

Meanwhile, German factory orders fell 4.2% in February, data showed, marking their sharpest fall since January 2017.

Shares in Asia ended higher on Thursday as hopes rise amid ongoing negotiations on the US-China trade front.

High-level trade negotiations between China and the US resumed on Wednesday in Washington. Hopes were high that both countries were closer to a deal, with US President Donald Trump planning to meet with Chinese Vice Premier Liu He on Thursday in Washington. White House economic advisor Larry Kudlow told the media Wednesday that China has acknowledged for the first time that the United States has legitimate gripes about IP theft, forced technology transfer and cyber hacking.

US stock closed higher Wednesday as investors reacted to upbeat comments on US-China trade talks, but weighed a shaky private-sector employment report. Payroll services firm ADP estimated that the US private sector added 129,000 jobs in March, the weakest reading in 18 months.

Among other data, Markit's March services purchasing managers index came in at 55.3. A reading of at least 50 indicates improving conditions, while those below that level denote contraction. Further, the Institute for Supply Management's services sector gauge fell to 56.1% in March, down from 59.7% in February.