Share Market Today: Indices End Their Consecutive Rally, Settle Lower Post MPC Decision

Among the 30-share Sensex constituents, Tata Motors dominated in green and rallied more than 3 per cent in the session. Other gainers included Axis Bank, Maruti, L&T, and ITC

Share Market Today: The two key equity benchmarks, Sensex and Nifty, on Friday settled the market session in red after trading in high volatility throughout the day following the RBI MPC announcement. The BSE Sensex closed the day more than 50 points lower at 81,709.12, while the NSE Nifty50 ended trading at 24,677.80, declining a little over 30 points.

The MPC decided to keep the interest rates unchanged and maintain the key repo rate at 6.5 per cent. The central bank also decided to hike the limit for collateral-free agricultural loans to Rs 2 lakh per borrower.

Stock Update

Among the 30-share Sensex constituents, Tata Motors dominated in green and rallied more than 3 per cent in the session. Other gainers included Axis Bank, Maruti, L&T, and ITC. On the flip side, Infosys, UltraTech Cement, HDFC Bank, HCL Tech, and ICICI Bank ended in the red.

In the broader markets, the Nifty Smallcap 50 index drove gains and climbed 0.84 per cent by the session end.

Sectoral Update

Sectorally, the metal index gained 1.23 per cent. On the other hand, the media index dominated in red and slipped 0.33 per cent.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, "Markets had been rising for the past five trading sessions and hence a small breather was expected. With RBI springing no major surprise in its credit policy announcement, investors booked profit in select frontlines. Although the undertone remains that of caution, the return of FIIs into local equities through select bullish bets has come as a major reprieve to investors."

Official exchange data revealed that foreign institutional investors became net buyers on Thursday and bought equities worth Rs 8,539.91 crore. 

The Asian markets saw a mixed response. While Seoul and Tokyo ended lower, Shanghai and Hong Kong closed the session higher. European markets traded on a mixed note.

Vinod Nair, Head of Research, Geojit Financial Services, noted, "Though benchmark indices concluded on a flattish trend, Indian broader indices displayed optimism as the RBI acknowledged the downward growth trend while last-mile inflation persisted. By lowering the CRR and injecting Rs 1.16 lakh crore into the financial system, the RBI aims to stimulate economic growth amid increased liquidity. The overall market exhibited a mixed outlook, reflecting a cautious yet resilient stance, with sector rotation and specific stock movements shaping market sentiment."