August 8, 2024
New Delhi, India
The Indian benchmark indices, Sensex and Nifty, exhibited weakness on Thursday as market participants focused on the Reserve Bank of India’s (RBI) monetary policy decision. As of 1:14 pm, the BSE Sensex fell by 439.46 points or 0.55% to trade at 79,028.55, while the Nifty 50 dropped by 139.15 points or 0.57% to trade at 24,158.35.
Key Highlights:
- Market Overview:
- Sensex and Nifty trade weak, with Sensex down 439.46 points and Nifty down 139.15 points.
- RBI’s Monetary Policy Decision:
- The RBI’s Monetary Policy Committee (MPC) decided unanimously to keep the repo rate unchanged at 6.5%.
- RBI Governor Shaktikanta Das highlighted the challenges of global volatility and domestic inflation.
- Market Volatility:
- The India VIX decreased by 13.73%, indicating reduced market volatility.
- Closing Bell:
- Nifty closed at 24,117.00, and Sensex fell by 581.79 points after RBI kept rates unchanged.
- Major losers on the Nifty included LTIMindtree, Grasim Industries, Asian Paints, Power Grid Corp, and Infosys.
- Gainers included HDFC Life, Tata Motors, SBI Life Insurance, HDFC Bank, and Cipla.
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- Sectoral Performance:
- Most sectoral indices ended in the red, except for pharma, healthcare, and media.
- The metal, realty, oil & gas, and information technology sectors declined by 1-2%.
- MidCap and SmallCap Indices:
- The BSE MidCap index was down 0.4%, and the SmallCap index ended flat.
- The broader market showed some resilience with modest gains in select sectors.
Market Reaction:
- The Sensex and Nifty experienced a rebound in afternoon trade amid the RBI’s decision to keep the repo rate unchanged.
- By the afternoon, the Sensex was trading 73 points higher at 79,541, and the Nifty50 was up 23 points at 24,321.
- Bothe Sensex and Nifty closed at 78,886.22 and 24,117.00.
- Key stocks like JSW Steel, Infosys, Tata Steel, and L&T led losses, while ITC, Tata Motors, and Titan led gains.
Sectoral Insights:
- On the BSE, major gainers included ITC, Tata Motors, Titan, and Cipla.
- Major losers included Infosys, JSW Steel, and ONGC.
- Sectoral indices such as Nifty Metal, Nifty IT, and Nifty Auto were down by up to 1%, while Nifty Media and Pharma gained modestly.
The Indian stock market experienced volatility following the RBI’s decision to keep interest rates unchanged. While some sectors faced pressure, others showed resilience. Investors are now expected to shift their focus towards US jobs data and recession concerns, which are likely to have a significant impact on market movements in the near term.
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