On Wednesday, the Indian stock market ended on a negative note, with benchmark indices closing lower as investor sentiment was dampened by escalating tensions between India and the United States. The impact of these geopolitical developments was further compounded by the Reserve Bank of India’s (RBI) decision to maintain the repo rate at 5.5%, as announced in the latest Monetary Policy Committee (MPC) meeting. This move, although largely expected, did little to boost market morale, particularly given the prevailing uncertainty in global trade dynamics.
The S&P BSE Sensex, India’s premier equity benchmark, declined by 166.26 points, eventually closing the day at 80,543.99. Similarly, the NSE Nifty50, another key benchmark index, fell by 75.35 points, ending the session at 24,574.20. These losses reflect the market's cautious stance amid a volatile international backdrop and mixed domestic cues.
Commenting on the day’s performance, Vinod Nair, who serves as Head of Research at Geojit Financial Services, observed that although the renewed trade tensions—primarily due to developments in U.S. policy—had created headwinds for the market, Indian equities demonstrated relative strength. He noted that the domestic market showed resilience by managing to stay close to the crucial support level of 24,500 on the Nifty.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, also weighed in on the developments. He stated that investors had been anticipating the outcome of the MPC meeting, but since the RBI’s decision to maintain the policy rate and its neutral stance were in line with market expectations, the announcement did not trigger any significant reactions in trading activity.
Despite the broader indices ending lower, certain stocks managed to post gains. On the BSE Sensex, Bharat Electronics Limited (BEL) led the list of top performers, rising by 0.80%. It was followed closely by Trent, which gained 0.79%, Adani Ports at 0.67%, State Bank of India (SBI) with a gain of 0.56%, and Mahindra & Mahindra, which rose by 0.55%. These pockets of strength offered some support to the overall market but were insufficient to offset broader losses.
On the downside, several major technology and pharmaceutical stocks underperformed, dragging the indices lower. Sun Pharmaceutical Industries registered the steepest decline of the day, dropping by 2.33%. Other significant losers included Tech Mahindra, which fell 1.97%, Bajaj Finance with a decline of 1.67%, Infosys, which slipped 1.64%, and HCL Technologies, down 1.38%. The collective weakness in these heavyweight sectors played a crucial role in pulling the market downward.
The lackluster performance of IT and pharma stocks reflected the broader cautiousness among market participants. These losses overshadowed the gains seen in the banking sector, which provided some support and helped to cushion the market from steeper declines.
In summary, the market’s recent movements highlight a sense of indecision and hesitation among investors, fueled by ongoing concerns over international trade tariffs and their potential consequences for the Indian economy. As Ajit Mishra pointed out, any further adverse developments or unexpected announcements related to trade policies could put additional pressure on the market. He noted that the next immediate support level for the Nifty is likely to be around 24,450, which traders and investors will be closely watching in the days ahead.
