Mumbai — Indian equity benchmarks ended lower on Wednesday, snapping a two-session winning streak after the Reserve Bank of India raised the repo rate by 25 basis points to 5.5 percent and shifted its policy stance to “calibrated tightening.”
The Sensex fell 429.11 points, or 0.59 percent, to close at 72,638.70, while the Nifty declined 173.05 points, or 0.76 percent, to settle at 22,603.05.
The central bank’s decision weighed on investor sentiment as markets assessed the implications of a tighter interest rate environment.
Market analysts said the Nifty fell below 22,700 and ended near the key 22,600 support level.
“A sustained break below this level could reopen downside toward 22,400, while 22,800 is now the first recovery hurdle,” market watchers said.
Among Nifty stocks, Titan Company, Bharat Electronics and Hindalco Industries were among the top laggards. Metal shares faced particularly heavy selling pressure and dragged the broader market lower.
The Nifty MidCap 100 fell 0.63 percent, while the Nifty SmallCap 100 bucked the broader weakness and gained 0.30 percent.
Sectorally, the Nifty Metal index was the day’s worst performer as investors reduced exposure to metal stocks. The Nifty PSU Bank index, however, outperformed other sectoral gauges and ended higher.
Analysts said investors are likely to closely watch how the RBI’s policy measures affect economic growth, liquidity and corporate earnings as the central bank focuses on containing inflation.
Attention is also expected to shift to the September-quarter earnings season for further market direction.
“A resilient macroeconomic backdrop supports headline expectations, but investors will watch management commentary closely for evidence on whether the companies can absorb rising input costs, retain pricing power and sustain demand through the second half of the fiscal year,” analysts said. (Source: IANS)
