Stock market
The Monetary Policy Committee of the Reserve Bank of India (RBI) on Friday decided to keep it stable at 5.5 percent, making no changes in the repo rate. After this announcement, there was a strong decline in the domestic stock market. The BSE Sensex fell by 165 points to a level of 80,544.95, while the Nifty 50 index fell 70 points to close at 24,579.70. Due to this decline, investors lost about ₹ 2.13 lakh crore in just 70 minutes. At the time of opening the market, the total market cap of the Sensex was ₹ 4,47,50,787.06 crore, which fell to ₹ 4,45,37,309.32 crore in less than one hour.
RBI Governor Sanjay Malhotra said that the decision to keep the policy rates stable was taken unanimously and the monetary trend has been maintained. Although this decision was in accordance with the market expectations, the market expected some more relief this time after a cut of 50 basis points made in the past. Experts believe that due to no change in the repo rate, the market did not get relief as expected, due to which the trust of the investors stagged and the selling intensified.
Little relief in inflation
RBI has reduced the estimate of consumer price index (CPI) based inflation to 3.1 percent, which was earlier 3.7 percent. However, core inflation is expected to remain stable around 4 percent. The last quarter of the FY2026 features an increase in retail inflation, which corresponds to the opinion of analysts. Meanwhile, RBI has retained the actual GDP growth rate for the current financial year at 6.5 percent.
Shown in this sector sky fall
After the policy announcement, there was widespread weakness in the market. The Nifty Midcap and Smallcap index broke more than 1 percent. Realty and auto were the most affected on the sectoral front.
Realty Sector: All the stocks here closed in red mark. Prestige fell by 2.5 percent to top loser. Shares like Phoenix, DLF, Lodha, Anand Raj, Brigade and Godrej Properties also fell by more than 1 percent.
Auto Sector: The bosch declined by 4.6 percent. Balkrishna Industries broke 3 percent, while Mother MotoCorp, Exide, TI India and TVS Motor recorded more than half a percent weakness. However, Maruti and Eicher Motors remained in the green mark.
Banking and Financial Sector: Due to the repo rate being stable, the banking sector was mixed. Kotak Bank, ICICI Bank, SBI, Bank of Baroda and HDFC banks closed in green mark, but IndusInd Bank fell 1 percent. IDFC First Bank and AU Small Finance Bank also had a weakness.
Other sectors: Nifty IT and Nifty Pharma saw a decline of more than 1 percent, while FMCG and metal index slipped about 0.4 percent.
Who remained the top gainers and lukeys?
Top Gainers: Shares like Trent, Asian Paints, Adani Ports, Kotak Bank and Coal India saw a good increase.
Falling shares: Eternal, Infosys, Wipro, Dr. Reddy and Cipla were the most damaged.