Indian Stock Market Ends Slightly Lower After RBI Holds Repo Rate Steady

The BSE Sensex ended at 80,543.99, down by 166.26 points or 0.21%. The 30-share index opened weaker at 80,694.98, compared to the previous close of 80,710.25.

During the session, it recorded a high of 80,834.43 and a low of 80,448.82, reflecting the volatility following the RBI’s announcement.

The broader NSE Nifty closed at 24,574.20, falling 75.35 points or 0.31%.

The IT sector bore the brunt of heavy selling, dragging down market sentiment.

Bank Nifty ended flat at 55,411.15, while Nifty Auto dropped 127 points (0.53%), Nifty FMCG fell 502 points (0.90%), and Nifty IT slid 608 points (1.74%).

Mixed Sectoral Trends

According to Ashika Institutional Equities, sectoral performance was mixed. Banks and financial services displayed relative stability, while pharmaceuticals, healthcare, IT, construction, media, and consumer goods sectors showed weakness. This divergence added to the market’s uncertain tone.

Major losers included Sun Pharma, Infosys, Tech Mahindra, Bajaj Finance, HCL Tech, TCS, and Bajaj FinServ.

On the other hand, Asian Paints, Adani Ports, Mahindra & Mahindra, BEL, SBI, and HDFC ended the session in green, offering some support to the benchmarks.

The broader market also faced sharp selling pressure.

Nifty Next 50 fell 580 points (0.87%), Nifty 100 declined 101 points (0.40%), Nifty Midcap 100 dropped 457 points (0.80%), and Nifty Small Cap 100 lost 201 points (1.13%).

As expected, the RBI kept the key policy rate unchanged, maintaining a neutral stance.

While the move was anticipated, it led to short-term uncertainty among market participants. Analysts believe investors were divided on how the policy stance would impact inflation and growth in the near term.

Despite global trade tensions and mixed domestic cues, analysts remain optimistic about the Indian economy’s trajectory.

Vinod Nair, Head of Research at Geojit Financial Services, said, “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.”

Also Read: RBI Holds Repo Rate At 5.5%: Key Highlights From The Latest Policy Meet