Indian equity benchmark indexes closed lower on Wednesday, breaking a 4-day gaining streak, after the RBI raised repo rate by 25 basis points. The central bank, however, maintained its neutral stance on monetary policy.
The silver lining for the indexes, however, is that the Sensex ended above 37,500, and Nifty was able to hold on to 11,300 mark. Banks underperformed with the Nifty Bank slipping nearly 170 points lower.
But gains in midcaps kept market breadth in favour of advances with the NSE advance-decline ratio at 1:1. HDFC twins and ICICI Bank pulled indexes lower, while the support came from TCS, Reliance and ITC.
Among stocks, Tata Motors recovered 6 percent from lows to close in the green after Q1 earnings, while Bajaj Auto closed at day’s low despite reporting in-line sales for July.
(Market update as of 3.45 pm)
RBI repo rate hike impact: Sensex, Nifty trade volatile
Indian markets continue to trade under pressure on Wednesday amid the Reserve Bank of India (RBI) raising key interest rates, but retained a neutral stance on the monetary policy. The RBI hiked repo rate by 25 basis points to 6.50 percent, while reverse repo rate now stands at 6.25 percent.
The Sensex dipped 148 points, or 0.39 percent lower, to 37,458.56 at 2.42 pm, while the Nifty declined to 11,340.70, down by 15.80 points, or 0.14 percent. All bank sectoral indices traded lower by up to 0.97 percent on the NSE with PSU Bank leading in losses. BSE Bankex is down by 0.72 percent.
(Market update as of 2.45 pm)
Here's how the markets performed around noon
Indian equity indexes have erased most of the gains from Wednesday morning's record rally amid sustained selling ahead of the Reserve Bank of India's (RBI) decision on key policy rates and guidance on monetary policy.
The Sensex and the Nifty 50 have slipped into the red before noon, with the 30-share BSE index shedding over 150 points from the day's high, trading at 37,556 at 11:58 AM, while the Nifty still hovered above the 11,350 mark, trading at 11,353 from the day's high of 11,390.55.
Midcaps still trade higher with the BSE MidCap and the NSE MidCap rising by over 0.4 percent. The BSE sectoral indices are mostly flat, with 5 out of the 19 indices trading with a negative bias. Only oil and gas, healthcare and energy have posted gains below a percent.
Among the NSE sectoral indices, PSU Bank has declined by 0.80 percent, while auto, private banks too have declined by half a percent. Only pharma, IT and media are trading higher by up to a percent.
Among stocks, Bajaj Finance, HPCL, Power Grid, Lupin, Bajaj Finserv, TCS, Sun Pharma, Bajaj Auto and Coal India have risen on indexes, while shares of Idea Cellular, Maruti Suzuki, Eicher Motors, Tata Motors, Axis Bank, Yes Bank and ICICI Bank have declined.
Asian markets are mixed with Japan's Nikkei rising by 0.85 percent, while Hong Kong's Hang Seng is down by 0.22 percent as trade tensions between the US and China simmer.
Also, catch all the action and updates in our Market Live blog.
First Published: IST