Benchmark indices Sensex and Nifty ended the session in the red after the Reserve Bank of India raised its benchmark interest rate by 25 basis points to 5.50 per cent, its first increase in over three years. The 30-share BSE Sensex closed 429.11 points or 0.59 per cent lower at 72,638.70.ย Similarly, the 50-share NSE Nifty fell 173.05 points or 0.76 per cent to close at 22,603.05. However, the broader market ended the session mixed. While the BSE MidCap Select Index fell 76.43 points, or 0.43 per cent, the BSE SmallCap Select Index added 15.71 points, or 0.17 per cent.ย
Among sectoral indices, Nifty Metal was the biggest loser, down 2.33 per cent, followed by Nifty Auto, down 1.58 per cent. Meanwhile, Nifty PSU Bank gained 1 per cent.ย
“Overall, the bias has turned cautiously weak. Todayโs pullback reflects the marketโs reaction to a more hawkish-than-expected RBI outcome after two sessions of gains, while firmer crude prices, continued pressure on the rupee and softer Asian markets add to the headwinds. The next phase of the recovery is likely to depend on how rate-sensitive sectors absorb the shift toward a tighter policy stance,” said Ponmudi R, CEO of Enrich Money.
Top gainers and losersย
Among the 30 Sensex firms, Kotak Bank, Bharti Airtel, ICICI Bank and Bajaj Finance were the major gainers, with Kotak Bank up 2.21 per cent today. On the flip side, Titan, BEL, Asian Paints, Infosys and L&T were among the laggards. Titan shares fell 3.52 per cent today.
Today, shares of 4 out of 30 Sensex companies closed in the green, while the remaining 25 closed in the red. Meanwhile, 9 of 50 Nifty 50 companies also closed in the green, while the other 41 closed in the red and one remained unchanged.
Rupee settles flat
Meanwhile, the Indian rupee traded weak, falling around 45 paise to 96.77, after the RBI raised its policy rate by 25 bps. The shift in stance from neutral to calibrated tightening has added to nervousness in the currency market, indicating that further rate hikes could remain on the table depending on inflation and incoming economic data.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)