Benchmark indices Sensex and Nifty ended lower on Wednesday after erasing early gains due to late selling in major stocks like Reliance Industries, ITC, and HDFC Bank. This occurred even as the Reserve Bank of India (RBI) took its first step towards a potential rate cut in its latest monetary policy review.
The 30-share BSE Sensex dropped by 167.71 points, or 0.21%, to close at 81,467.1. Earlier in the day, it had surged by 684.4 points, or 0.83%, to reach an intraday high of 82,319.21. Similarly, the NSE Nifty fell by 31.20 points, or 0.12%, to finish at 24,981.95, after reaching an intraday high of 25,234.05.
While the RBI kept its key interest rate unchanged at 6.5% for the 10th consecutive policy meeting, it adjusted its stance from “hawkish” to “neutral,” signaling a potential rate cut in the future. The RBI’s monetary policy committee, consisting of three RBI officials and three external members, voted 5-1 in favor of maintaining the repo rate.
Among the top Sensex losers were ITC, Nestle India, Hindustan Unilever, Reliance Industries, Larsen & Toubro, and HDFC Bank. On the other hand, Tata Motors, Tech Mahindra, State Bank of India, Maruti Suzuki, Bajaj Finance, Axis Bank, Bajaj Finserv, and Bharti Airtel were among the gainers.
European markets were trading higher in mid-session, while Asian markets closed mixed, with Shanghai, Hong Kong, and Seoul in the negative, and Tokyo in the positive. In the oil market, Brent Crude rose by 0.87%, trading at USD 77.85 per barrel.
Vinod Nair, Head of Research at Geojit Financial Services, noted that an upward revision of Q3FY25 inflation figures indicated continued inflation concerns, prompting investors to book profits. He also mentioned that despite the RBI’s neutral stance, the outlook did not suggest an imminent rate cut.
On Tuesday, Foreign Institutional Investors (FIIs) sold equities worth Rs 5,729.60 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 7,000.68 crore. US markets had closed with gains the previous day.
