Mumbai– The Indian stock market closed lower on Wednesday, weighed down by weak global cues and concerns over new U.S. trade tariffs, despite a 25 basis point rate cut by the Reserve Bank of India (RBI).
The RBI’s Monetary Policy Committee (MPC) reduced the benchmark repo rate from 6.25% to 6.00% in an effort to support economic growth amid rising global uncertainty. Alongside the rate cut, the central bank shifted its policy stance from “accommodative” to “neutral.”
Despite this move, investor sentiment remained subdued due to global trade tensions. The BSE Sensex fell 379.93 points, or 0.51%, to close at 73,847.15. The NSE Nifty also dropped 136.70 points, or 0.61%, ending the session at 22,399.15.
Among the top performers on the Sensex were Nestlé India, which gained over 3%, Hindustan Unilever, up 2.52%, and Titan, which rose 1.66%. Other notable gainers included Adani Ports, Power Grid, Asian Paints, and ITC.
On the flip side, major laggards included State Bank of India (SBI), Tech Mahindra, Tata Steel, and Larsen & Toubro, with some stocks falling as much as 3.4%.
Broader markets also faced selling pressure. The BSE Midcap index declined by 0.73%, while the Smallcap index dropped 1.08%.
Sector-wise, the worst performers were Nifty IT, Pharma, PSU Bank, Realty, and Healthcare, with losses ranging from 1.11% to 2.25%.
“Global financial markets are facing renewed selling pressure following the implementation of reciprocal tariffs,” said Vinod Nair, Head of Research at Geojit Financial Services.
He noted that although the RBI’s rate cut and neutral stance are constructive for the domestic economy, they haven’t been enough to lift overall market sentiment, especially as global recession fears loom.
Ajit Mishra, SVP – Technical Research at Religare Broking, added that the announcement of new U.S. tariffs on China triggered a gap-down opening, followed by a largely range-bound session.
The Indian stock markets will remain closed on April 10 in observance of Mahavir Jayanti. (Source: IANS)
