Sensex Ends 215 points Lower, Nifty Below 16,400 Due to Volatility Following the Increase in Repo Ra
Following the RBI's increase in the repo rate, the benchmarks of the domestic equities markets, the BSE Sensex and Nifty 50, both closed the day 0.4% lower. BSE Sensex closed at 54892, down 215 points or 0.4%, while Nifty 50 index closed at 16356, down 60 points or 0.4%. Top index gainers included Tata Steel, State Bank of India (SBI), Dr. Reddy's Laboratories, TCS, Titan Company, Bajaj Finance, and Maruti Suzuki. Bharti Airtel, on the other hand, was the biggest drag, followed by ITC, Reliance Industries Ltd (RIL), Asian Paints, Axis Bank, and ICICI Bank, among others.
The BSE Midcap and Smallcap indices, which represent the whole market, also experienced slight declines at the close. Additionally, the breadth had a slight disadvantage. The BSE Telecom index lost 1.6% sectorally. The FMCG and Energy indices both experienced a 1% decline. The BSE Realty index increased by roughly 2%, which is good news.
In comparison to other individual equities, MRPL increased by almost 9%. The stock, which has more than doubled in the last two months, recently traded at its highest level since October 2018.
After the promoter firm allegedly just sold 3.6 million shares, or 2.8% of the footwear company, for close to Rs 613 crore through open market transactions, Bata India fell 2.5%.
"RBI turned realistic by abandoning its accommodative posture, realizing the necessity for front-loaded action, and increasing inflation projection by 100bps to 6.7 percent," said Vinod Nair, Head of Research at Geojit Financial Services. On the plus side, there weren't any increases in CRR, the economy continued to develop at a robust 7.2% rate, and no new policies to lessen banking system liquidity were announced. However, attention has now turned to the international market, which is preparing for a hawkish Fed policy to be announced next week.
On Wednesday, European markets declined, swiftly wiping out early gains, as dropping metal prices hurt miners and banks, while Credit Suisse's nearly 6% decline following a profit warning hurt banks. The pan-European STOXX 600 index fell 0.1% by 0721 GMT after rising to 0.3% at the outset in tandem with a surge in global markets. Banks sank 1% as Credit Suisse revealed it would probably experience a group-wide loss in the second quarter, dealing the struggling institution yet another blow.
Following Wall Street's strong example, Asian equities opened higher on Wednesday. Tech firms saw significant buying activity once more amid hopes that China's ongoing crackdown on the industry is coming to an end. Outside of Japan, the MSCI index of shares in Asia-Pacific increased by 1.10 percent.
Following Wall Street's gains, Tokyo markets opened higher on Wednesday, with some support for exporters coming from the weak yen. The more inclusive Topix index increased by 0.45%, or 8.71 points, to 1,955.74, while the benchmark Nikkei 225 index increased by 0.61 percent, or 169.99 points, to 28,113.94.