NEW DELHI: The BSE Sensex fell by 570.09 points, or 0.73%, to close at 78,897.92, while the broader NSE Nifty dropped 178.2 points, or 0.8%, to 24,119.30 on Thursday. The decline came as investors booked profits following the Reserve Bank of India’s decision to keep interest rates unchanged, maintaining a hawkish stance due to persistent food inflation.
The rupee weakened marginally by 0.01% against the US dollar, quoting at 83.96 per dollar.Dollar sales on behalf of the central bank helped counter the impact of wavering global risk appetite.
The benchmark 10-year bond yield remained steady at 6.8624%, with the bond quoted at 101.58 rupees, as the RBI’s policy announcement delivered no major surprises.
The RBI’s Monetary Policy Committee (MPC) decided to keep the repo rate steady at 6.5%, marking the ninth consecutive time the rate has remained unchanged since April last year. RBI Governor Shaktikanta Das emphasised that the MPC would stay vigilant on food inflation, signaling a cautious approach moving forward.
“RBI MPC is in a wait-and-watch mode, holding interest rates steady while awaiting cues from the US Federal Reserve. In the meantime, stock markets will likely continue to consolidate,” said Umeshkumar Mehta, CIO at SAMCO Mutual Fund.
Among the 30 Sensex companies, Power Grid, Infosys, Larsen & Toubro, JSW Steel, UltraTech Cement, and Asian Paints were the top losers. On the other hand, Tata Motors, HDFC Bank, Tech Mahindra, and ITC showed gains during the initial trade.
In Asian markets, Shanghai and Hong Kong traded higher, while Seoul and Tokyo saw declines. US markets also ended lower on Wednesday, contributing to the weak sentiment in Indian equities.
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs3,314.76 crore on Wednesday. Over the last four days, FIIs have sold Rs20,228 crore in the cash market, according to exchange data. “This is a rational move given India’s high valuations and concerns over recession fears in the US and issues related to the unwinding of the yen carry trade,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, global oil benchmark Brent crude rose by 0.17% to $78.46 a barrel.
On Wednesday, the Sensex had rallied 874.94 points, or 1.11%, to close at 79,468.01, while the Nifty surged 304.95 points, or 1.27%, to 24,297.50, reflecting strong intraday performance.
The rupee weakened marginally by 0.01% against the US dollar, quoting at 83.96 per dollar.Dollar sales on behalf of the central bank helped counter the impact of wavering global risk appetite.
The benchmark 10-year bond yield remained steady at 6.8624%, with the bond quoted at 101.58 rupees, as the RBI’s policy announcement delivered no major surprises.
The RBI’s Monetary Policy Committee (MPC) decided to keep the repo rate steady at 6.5%, marking the ninth consecutive time the rate has remained unchanged since April last year. RBI Governor Shaktikanta Das emphasised that the MPC would stay vigilant on food inflation, signaling a cautious approach moving forward.
“RBI MPC is in a wait-and-watch mode, holding interest rates steady while awaiting cues from the US Federal Reserve. In the meantime, stock markets will likely continue to consolidate,” said Umeshkumar Mehta, CIO at SAMCO Mutual Fund.
Among the 30 Sensex companies, Power Grid, Infosys, Larsen & Toubro, JSW Steel, UltraTech Cement, and Asian Paints were the top losers. On the other hand, Tata Motors, HDFC Bank, Tech Mahindra, and ITC showed gains during the initial trade.
In Asian markets, Shanghai and Hong Kong traded higher, while Seoul and Tokyo saw declines. US markets also ended lower on Wednesday, contributing to the weak sentiment in Indian equities.
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs3,314.76 crore on Wednesday. Over the last four days, FIIs have sold Rs20,228 crore in the cash market, according to exchange data. “This is a rational move given India’s high valuations and concerns over recession fears in the US and issues related to the unwinding of the yen carry trade,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, global oil benchmark Brent crude rose by 0.17% to $78.46 a barrel.
On Wednesday, the Sensex had rallied 874.94 points, or 1.11%, to close at 79,468.01, while the Nifty surged 304.95 points, or 1.27%, to 24,297.50, reflecting strong intraday performance.