Stock Market Updates: Both Sensex and Nifty is Down After Repo Rate Cuts
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Summary: Following the RBI MPC's 25 basis point rate drop, the Indian blue-chip indices, the Sensex and Nifty, saw lower trading on Friday.
For the first time since May 2020, the RBI lowered its primary repo rate on Friday to boost the faltering economy, which is expected to expand at its slowest rate in four years. As demand continues to decline, the rate drop is meant to improve liquidity and boost spending.
After RBI Governor Sanjay Malhotra's crucial interest rate comments later in the day, the cautiously hopeful benchmark stock indices, the BSE Sensex and Nifty50, recorded slight increases at market opening on Friday.
The Monetary Policy Committee (MPC) lowered the repo rate, but the market remained unstable. The telecom, metals, and car sectors experienced growth, while financial, FMCG, and IT firms led to a decline in the Nifty.
The Nifty ended 43 points lower, 0.2%, at 23,559, and the Sensex fell 197 points, 0.3%, to 77,860. 2,293 shares went down, 1,468 shares went up, and 139 shares stayed the same.
The banking sector struggled because the RBI's monetary policy didn't include extra steps to ease liquidity. SBI and ICICI Bank took the biggest hits leading to a 0.5% drop in the Nifty Bank index.
The BSE Smallcap index fell 0.7%, while the BSE Midcap index didn't change showing the mixed results in the broader markets. four out of thirteen main sector indexes finished the day higher.
