Stock markets react to RBI MPC rate move, end in red
New Delhi, Oct 7 (UNI) Indian stock markets on Wednesday ended lower in a volatile session snapping their two-day winning streak. Nifty broke below 22,600 intraday and witnessed some buying in the mid-session. Markets' reaction came after the RBI raised the repo rate by 25 bps to 5.50%, its first hike since February 2023.
At close, the Sensex was down 429.11 points or 0.59 percent at 72,638.70, and the Nifty was down 173.05 points or 0.76 percent at 22,603.05. Nifty Midcap index falling 0.6%, and smallcap index gaining 0.3%. Among sectors, except media and PSU Bank, all other indices ended in the red with FMCG, IT, auto, metal, realty down 1-2%.
On Nifty, the losers were Titan Company, Adani Enterprises, Hindalco Industries, JSW Steel, Bharat Electronics, while gainers included Kotak Mahindra Bank, BSE Limited, Bharti Airtel, ICICI Bank and Coal India. More than 150 stocks touched 52-week low, on the other hand, more than 150 stocks touched 52-week high. Those on the lows included Max Healthcare, IOC, Bharti Hexacom, Bikaji Foods, Bombay Burmah, Max Financial, NSDL, IOC, Avenue Supermarts, among others. On the other hand, the highs included PVR INOX, Gland Pharma, TBO Tek, HFCL, PTC Industries, Leela Palaces, BHEL, Laurus Labs, Welspun Living, among others.
Vinod Nair, Head of Research, Geojit Investments Limited said, "With the RBI delivering the rate hike on expected lines, the domestic market reacted more sharply to the shift in policy stance from neutral to calibrated tightening, which signals a turn in the rate cycle. While the upward revision to growth projections reaffirmed the strength of domestic fundamentals, the higher inflation outlook and the RBI's emphasis on price stability tempered sentiment." "Ahead of the U.S. FOMC meeting, the rupee remained under pressure amid rising U.S. yields, a stronger dollar and continued FII outflows, adding to the market decline. Sectorally, banking stocks bucked the broader weakness on expectations of margin benefits from a higher-rate environment, while selling pressure remained widespread across most pockets of the market."
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