The Indian stock market closed slightly lower on Wednesday following a volatile session, as investors reacted cautiously to the Reserve Bank of India’s (RBI) decision to keep the benchmark repo rate unchanged at 5.5 per cent. The decision, though widely anticipated, triggered mixed responses across sectors and market participants.
The benchmark Sensex declined by 166.26 points or 0.21 per cent to settle at 80,543.99. The index opened lower at 80,694.98, slipping from Tuesday’s close of 80,710.25. It witnessed a choppy trading session, oscillating between an intraday low of 80,448.82 and a high of 80,834.43.
The broader Nifty 50 also lost ground, closing 75.35 points or 0.31 per cent lower at 24,574.20. Market sentiment remained cautious amid global trade tensions and domestic rate-sensitive cues.
Sectoral Performance: IT, FMCG Drag; Banks Hold Steady
The IT sector led the losses, falling sharply on tariff-related concerns, with the Nifty IT index plunging 608 points or 1.74 per cent. Nifty FMCG also came under pressure, shedding 502 points or 0.90 per cent, while Nifty Auto declined by 127 points or 0.53 per cent.
In contrast, banking and financial services showed relative stability. Bank Nifty ended flat at 55,411.15, reflecting subdued investor reaction to the RBI’s status quo on monetary policy. Analysts noted that the central bank’s neutral stance created some uncertainty in the short term, though it aligns with broader economic expectations.
“Sector performance was mixed, with banks and financial services showing relative stability, while sectors such as pharmaceuticals, healthcare, IT, construction, media, and consumer goods faced noticeable weakness,” noted Ashika Institutional Equities in its daily commentary.
Top Gainers and Losers
Among major laggards were Sun Pharma, Infosys, Tech Mahindra, Bajaj Finance, HCL Tech, TCS, Ultratech Cement, and Bajaj Finserv. On the positive side, Asian Paints, Adani Ports, Mahindra & Mahindra, BEL, SBI, and HDFC ended the session in green, providing some cushion to the indices.
Broader Market Under Pressure
The broader markets also faced significant selling pressure. Nifty Next 50 dropped 580 points or 0.87 per cent, Nifty 100 declined by 101 points or 0.40 per cent, Nifty Midcap 100 slipped 457 points or 0.80 per cent, and Nifty Smallcap 100 lost 201 points or 1.13 per cent.
Outlook: Resilience Amid External Headwinds
Despite global trade uncertainties and profit booking in heavyweight sectors, analysts remain cautiously optimistic about the domestic outlook.
“The Indian economy appears well-positioned for a stronger second half, supported by improving consumption trends, private sector investment, and sustained government-led capital expenditure. This reinforces investor confidence, even amid external volatility,” said Vinod Nair, Head of Research at Geojit Financial Services.
Going forward, markets are expected to remain sensitive to global developments, monsoon progress, and corporate earnings results, while the RBI’s policy stance may continue to influence sentiment in rate-sensitive sectors.