Business

India’s Equity Indices Drop After RBI Governor’s Monetary Policy Outlook

India’s equity indices closed lower on Thursday after the Reserve Bank of India (RBI) governor’s outlook in the latest monetary policy announcement.

The Sensex fell by 581 points, or 0.73%, closing at 78,886, while the Nifty slipped 180 points, or 0.74%, ending the day at 24,117.

The RBI decided to keep the repo rate unchanged at 6.5% and maintained a growth outlook of 7.2% for the current financial year.

Despite the steady rate, the governor’s comments on inflation and economic conditions contributed to the market’s decline.

On the Bombay Stock Exchange (BSE), the trading day saw 1,768 shares gain, 2,137 shares decline, and 105 shares remained unchanged.

The midcap and smallcap indices also experienced downturns, with the Nifty Midcap 100 index falling 192 points, or 0.34%, to 56,681, and the Nifty Smallcap 100 index dropping 76 points, or 0.41%, to 18,307.

Sector-wise, IT, PSU Bank, FMCG, metal, realty, energy, and infrastructure stocks were among the worst performers.

In contrast, sectors such as financial services, pharma, media, and private banks saw gains.

Within the Sensex pack, the top gainers included Tata Motors, HDFC Bank, Bharti Airtel, ITC, IndusInd Bank, and Axis Bank. On the flip side, Asian Paints, Infosys, JSW Steel, UltraTech Cement, Power Grid, L&T, and HCL Tech were the top losers.

RBI Holds Rates, Highlights Food Inflation In Monetary Policy, Says Expert

Sujan Hajra, Chief Economist and Executive Director at Anand Rathi Shares and Stock Brokers, noted, “The RBI, in its 50th Monetary Policy Committee (MPC) meeting, kept its stance on both policy rates and liquidity unchanged. The governor’s emphasis on food inflation was notable. Overall, the policy was in line with expectations and remains neutral for the markets.”

Market analysts pointed out a cautious trend among institutional investors.

Foreign Institutional Investors (FIIs) have been on a selling spree, offloading shares worth Rs 20,228 crore in the cash market over the past four days. This risk-averse behavior has contributed to the bearish sentiment in the markets.

Also Read: RBI Boosts UPI Tax Payment Limit To Rs 5 Lakh, Introduces New Payment Feature

Mankrit Kaur

Recent Posts

SC Upholds Rajasthan’s Electricity Regulations; Dismissing Power Companies Plea

The Supreme Court has granted a major relief to the Rajasthan government by upholding the…

53 mins ago

SC Expresses Concern Over Rising Trend Of False Rape Cases On Marriage Promises

The Supreme Court has expressed concern over the rising tendency to register rape cases based…

1 hour ago

Adani Ports Mundra Sets National Record With Historic 200 MMT Cargo Handling Milestone

Adani Ports & Special Economic Zone set a national record by handling 450 MMT of…

1 hour ago

SC Seeks Response On Vikas Yadav’s Bail Plea In Nitish Katara Murder Case

SC issues notice to UP govt, Neelam Katara on Vikas Yadav’s interim bail plea in…

2 hours ago

SC Slams Telangana CM Over Remarks On BRS MLAs’ Disqualification Case

The SC expressed displeasure over Telangana Chief Minister A Revanth Reddy’s remarks regarding the disqualification…

2 hours ago

Jamaat-e-Islami Hind (JIH) Opposes Waqf Bill; Calls It Legislative Discrimination

JIH President Syed Sadatullah Husaini condemns the Waqf Amendment Bill for singling out Muslims and…

2 hours ago