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Key Points

The Indian stock market closed slightly lower after the RBI maintained the repo rate at 5.5%. IT and pharma stocks led the decline, while banking shares remained stable. Analysts noted mixed sectoral performance amid global trade tensions. Market experts remain optimistic about domestic economic recovery in the coming months.

Key Points: Indian Stock Market Dips Slightly as RBI Holds Repo Rate at 5.5%

  • Sensex fell 166 points to 80,543 amid RBI rate decision
  • IT stocks dragged Nifty down 75 points
  • Bank Nifty remained flat despite policy uncertainty
  • Analysts expect stronger domestic growth in H2 2024
2 min read

Indian stock market ends a tad lower after RBI keeps repo rate unchanged

Sensex and Nifty decline marginally after RBI keeps repo rate unchanged amid volatile trading, with IT and pharma sectors under pressure.

Indian stock market ends a tad lower after RBI keeps repo rate unchanged
"Sector performance was mixed, with banks stable while IT, pharma, and consumer goods faced weakness – Ashika Institutional Equities"

Mumbai, Aug 6

The Indian stock market ended slightly lower after witnessing volatile trading on Wednesday, as investors showed mixed reaction to the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 5.5 per cent.

Sensex settled at 80,543.99, down 166.26 points or 0.21 per cent. The 30-share index opened in negative territory at 80,694.98 against last session's closing of 80,710.25 ahead of the RBI's decision on rate cut in the morning. The index hit an intra-day low of 80,448.82 and a high of 80,834.43 amid a volatile session.

The IT sector stock experienced heavy selling amid the tariff concerns. Nifty closed at 24,574.20, down 75.35 points or 0.31 per cent.

Despite renewed trade tensions, the domestic market remained resilient, holding firm near the key support level of 24,500, said analysts.

"Sector performance was mixed, with banks and financial services showing relative stability, while sectors such as pharmaceuticals, healthcare, IT, construction, media, and consumer goods faced noticeable weakness," said Ashika Institutional Equities in its note.

Bank Nifty experienced volatility as the RBI held its key policy rate steady, maintaining a neutral stance, which was widely expected. This unchanged monetary policy led to some uncertainty among participants.

Sun Pharma, Infosys, Tech Mahindra, Bajaj Finance, Eternal, HCL Tech, TCS, Ultratech, and Bajaj FinServ were among the top losers. Asian Paints, Adani Ports, Mahindra and Mahindra, BEL, SBI, and HDFC settled in green.

Among sectoral indices, Bank Nifty ended the session flat at 55,411.15, Nifty Auto fell 127 points or 0.53 per cent, Nifty FMCG closed 502 points or 0.90 per cent down, and Nifty IT ended the session 608 points or 1.74 per cent lower.

The broader market experienced heavy selling with Nifty Next 50 dragged 580 points or 0.87 per cent, Nifty 100 fell 101 points or 0.40 per cent, Nifty Midcap 100 dipped 457 points or 0.80 per cent, and Nifty Small Cap 100 closed 201 points or 1.13 per cent down.

"In anticipation of improvement in consumption, private investment, and continued government-led capex, the domestic economy appears well-positioned for a better second half, reinforcing investor confidence despite external uncertainties," said Vinod Nair, Head of Research, Geojit Investments Limited.

- IANS

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Reader Comments

S
Shreya B
As a small investor, these small corrections are actually good opportunities to buy quality stocks at better prices. SIP continues! 💪
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Aditya G
The market reaction shows RBI's decision was already priced in. More concerned about global factors like US-China trade tensions affecting our IT sector exports.
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Priya S
Why is everyone so obsessed with daily movements? Long term investors shouldn't worry about these minor blips. Our economy fundamentals remain strong!
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Karthik V
The banking sector stability is good news for retail borrowers like me. At least home loan EMIs won't increase further for now. 😅
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Michael C
As an NRI investor, I appreciate RBI's cautious approach. Better to maintain stability than make hasty decisions that could backfire later.
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Nisha Z
The market is behaving exactly as my CA uncle predicted! He says this is normal profit booking after recent rally. Time to research some pharma stocks 👩‍💻
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