Sensex Falls 429 Points, Nifty Slips Below 22,650 After RBI Rate Hike
Mumbai — Indian equity benchmarks ended lower Wednesday, snapping a two-session winning streak after the Reserve Bank of India raised the repo rate by 25 basis points to 5.5 percent and shifted its monetary policy stance to “calibrated tightening.”
The Sensex fell 429.11 points, or 0.59 percent, to close at 72,638.70, while the Nifty declined 173.05 points, or 0.76 percent, to settle at 22,603.05.
Market experts said the Nifty slipped below 22,700 and closed near the key 22,600 support level.
“A sustained break below this level could reopen downside toward 22,400, while 22,800 is now the first recovery hurdle,” market watchers said.
Investor sentiment remained cautious after the RBI’s policy move signaled a tighter interest-rate environment.
Among Nifty stocks, Titan Company, Bharat Electronics and Hindalco Industries were among the biggest laggards. Metal stocks came under particular selling pressure and weighed on the broader market.
The Nifty MidCap 100 fell 0.63 percent, while the Nifty SmallCap 100 bucked the broader decline and gained 0.30 percent.
Among sectoral indices, the Nifty Metal index was the day’s worst performer as investors reduced exposure to metal stocks. The Nifty PSU Bank index outperformed other sectors and ended higher, providing some support to the market.
Analysts said investors are likely to closely watch how the RBI’s policy measures affect economic growth, liquidity conditions and corporate earnings in the coming months as the central bank focuses on containing inflation.
Attention is also expected to shift toward the September-quarter earnings season for further market direction.
“Looking ahead, the market focus will turn to the September-quarter earnings season for further direction. A resilient macroeconomic backdrop supports headline expectations, but investors will watch management commentary closely for evidence on whether the companies can absorb rising input costs, retain pricing power and sustain demand through the second half of the fiscal year,” analysts said. (Source: IANS)
