Mumbai (Maharashtra) [India], August 8 (ANI): The Indian benchmark indices traded weak after opening on a negative note on Thursday, reacting to the unchanged policy repo rate announced by the Reserve Bank of India.
On August 8, the NSE Nifty 50 closed 0.81 per cent lower at 24,100.50, while the BSE Sensex ended 0.75 per cent lower at 78,873. The Sensex and Nifty closed 582 and 180 points down after the day’s trade.
The stocks of HDFC Life, Tata Motors, HDFC Bank, SBI Life Insurance, and Cipla traded in the green territory while the stocks of LTIMindtree, Grasim Industries, Asian Paints, Infosys, and Apollo Hospitals traded in the red territory.
On the equity front, the BSE MidCap and SmallCap indices showed gains of 0.36 per cent and 0.76 per cent, respectively.
During trade hours, the investor’s sentiments were also influenced by the RBI’s decision that kept the repo rates unchanged.
In a move reflecting its cautious approach amid ongoing economic uncertainties, the apex bank kept the repo rate unchanged at 6.5 per cent.
This marks the ninth consecutive time the central bank has opted for stability in its monetary policy.
The decision to keep the repo rate steady comes amidst persistent concerns about inflation, which remains above the RBI’s target range.
“Currently, the market is displaying weak sentiments due to several reasons, including cross-border geopolitical concerns, inflationary pressure, and unemployment. These concerns are expected to continue hampering market sentiments,” said VLA. Ambala, a research analyst and co-founder of Stock Market Today (SMT).
“Today, the RBI has also shared concerns about the possibility of a recession and a high inflation rate. Amid this, the RBI did not confirm any change in the REPO rate or 6.5 per cent capital rate, which have remained unchanged for 9 consecutive months, ” she added.
The GDP forecast for Q1FY25 has been revised down from 7.3 per cent to 7.1 per cent, with the FY25 forecast held at 7.2 per cent. Inflation expectations for Q2 and Q3FY25 have been raised to 4.4 per cent and 4.7 per cent, respectively, while the Q4 forecast has been reduced to 4.3 per cent.
During the trade, the sectoral performance was mixed with Nifty Metal, IT, and Auto indices declining by up to 1 per cent whereas Nifty Media and Pharma indices rose by 0.15 per cent and 0.8 per cent, respectively. (ANI)
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