Stock market recap: Indian equities snapped a two-day winning streak on Wednesday after the Reserve Bank of India raised interest rates for the first time since February 2023. The Nifty 50 fell 173.05 points, or 0.76%, to close at 22,603.05, after touching a low of 22,546.30. The Sensex lost 429.11 points, or 0.59%, to settle at 72,638.70.
The RBI raised the repo rate by 25 basis points to 5.50% and shifted its stance to “calibrated tightening”, signalling that rate cuts are off the table for now. It also raised its growth forecast for the financial year to 7.1% and its inflation forecast to 5.2%, citing high crude oil and food prices.
Metals, consumer durables, autos and IT led the decline. Titan fell about 4% after its quarterly jewellery growth missed expectations. Reliance Industries rose nearly 3% on expectations of a Jio Platforms IPO, while Kotak Mahindra Bank extended its gains. Bank Nifty recovered sharply from its lows to end nearly flat.
Market breadth remained negative, with 1,549 stocks advancing, 2,043 declining and 98 unchanged. Investors will now watch quarterly earnings and global crude-oil trends for direction.
Indian equities ended lower on Wednesday, snapping a two-session relief rally as investors digested the Reserve Bank of India’s (RBI) 25-basis-point repo-rate hike to 5.50% and shift to a “calibrated tightening” stance. Elevated crude-oil prices, rupee weakness and continued foreign selling also weighed on sentiment.