RBI Holds Rates, Markets Tumble: Sensex Sheds 220 pts, Nifty Below 24,600; SMIDs Take a Hit

By Rakesh

Synopsis : Markets opened in the red as the RBI kept repo rates unchanged at 5.5%, leading to cautious sentiment across sectors. Broader indices like Nifty Midcap100 and Smallcap100 dropped sharply amid global trade tensions.


RBI Holds Rates, Markets Tumble: Sensex Sheds 220 pts, Nifty Below 24,600; SMIDs Take a Hit


Stock Market LIVE – August 6, 2025:


The Indian stock market witnessed a subdued trading session on Wednesday after the RBI’s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, announced that the repo rate would remain unchanged at 5.5%. The decision, while in line with expectations, failed to lift investor sentiment.


Adding to the market woes were fresh tariff threats by US President Donald Trump in response to India's ongoing imports of Russian oil, reigniting fears of strained global trade dynamics.


At 11:00 AM, the BSE Sensex had declined by 228.54 points to 80,481.71, while the Nifty50 was trading 94 points lower at 24,555.50.


Key Takeaways:

RBI Stance: Unanimous vote to keep rates unchanged with a Neutral policy stance

Inflation Outlook:

FY26 headline inflation projected at 3.1%, down from 3.7% in June

FY27 CPI forecasted at 4.9%, breaching RBI’s 4% comfort band

GDP Outlook: Real GDP growth estimate stays put at 6.6% for FY26

Geopolitical Risk: Ongoing tariff threats from the US are keeping global markets on edge


Sectoral Performance:

Losers:

Nifty IT, Pharma, Realty (down over 1%)

Auto, FMCG, Metal, Energy also in the red


Gainers:

Nifty Bank, Oil & Gas showed mild strength


Broader Market Pressure:

Nifty Midcap100: Down 0.87%

Nifty Smallcap100: Down 1.1%


The underperformance of small- and mid-cap stocks highlights risk aversion among retail and institutional investors alike, especially under global economic uncertainty.


Notable Movers:

Top Laggards:

Infosys

Eternal (Zomato)

Tech Mahindra

Bajaj Finance

HCL Technologies


Top Gainers:

Trent

Asian Paints

Kotak Mahindra Bank

Bharti Airtel

Bharat Electronics


Disclaimer : This article is for informational purposes only and does not constitute financial advice. Please consult a certified financial advisor before making any investment decisions.

Post a Comment

0 Comments
Post a Comment (0)
To Top