Markets Close Lower After RBI Keeps Repo Rate Unchanged
Mumbai — Indian equity markets ended lower after the Monetary Policy Committee kept the repo rate unchanged and investors continued to assess global economic uncertainties.
The Nifty fell 49.85 points, or 0.21%, to close at 23,366.70. The Sensex slipped 116.67 points, or 0.16%, to settle at 74,243.34.
Market analysts said the 23,450 to 23,550 range remains a key immediate resistance zone for the Nifty.
“A sustained breakout above this band could improve market sentiment and open the door for a recovery toward the 23,750–23,800 levels,” an analyst said.
On the downside, analysts said the 23,250 level remains an important near-term support zone.
“Sustaining above this zone will be crucial to preserve the current structure,” the analyst said.
Among individual stocks, Hindalco Industries, Wipro and Trent were the top losers on the Nifty.
Broader markets also ended weak. The Nifty MidCap index fell 0.35%, while the Nifty SmallCap index declined 0.06%.
Among sectors, IT and metal stocks came under pressure, while media stocks outperformed the broader market.
Sentiment remained cautious after the Monetary Policy Committee unanimously decided to keep the policy repo rate unchanged at 5.25% and maintain a neutral stance amid global uncertainties.
The Reserve Bank of India also announced measures aimed at increasing foreign inflows into domestic financial markets. These include higher investment limits in equities for nonresident Indians and Overseas Citizens of India, as well as an expanded list of government securities under the Fully Accessible Route.
Market experts said investors remained focused on policy signals and global cues, leading to a muted close for domestic equities.
“From a broader perspective, today’s market action suggests investors are interpreting the RBI policy as a balancing act between growth and macroeconomic stability,” a market expert said. (Source: IANS)
