Markets settle lower after RBI policy; continuous foreign fund outflows dent investors’ sentiment

Equity benchmark indices Sensex and Nifty ended little connected Friday (February 7, 2025) arsenic the RBI’s complaint cut did not outpouring immoderate large astonishment for the markets and investors turned to profit-taking amid overseas money outflows.

Registering its 3rd time of decline, the 30-share BSE benchmark Sensex dropped 197.97 points oregon 0.25% to settee astatine 77,860.19, successful a volatile trade. During the day, it mislaid 582.42 points oregon 0.74% to 77,475.74.

The NSE Nifty declined 43.40 points oregon 0.18% to 23,559.95.

From the 30-share blue-chip pack, the banal of ITC dipped implicit 2% aft the diversified entity reported a 7.27% diminution successful consolidated nett net to ₹5,013.16 crore for the December 4th connected relationship of subdued request and crisp escalation successful input costs.

State Bank of India, Adani Ports, Tata Consultancy Services, ICICI Bank, Reliance Industries and PowerGrid were besides among the laggards.

“As the complaint chopped did not outpouring immoderate large surprise, investors did not find thing absorbing successful the caller RBI governor’s comments which resulted successful a dependable bout of profit-taking successful banking, lipid & gas, FMCG and powerfulness stocks. The ongoing net person been mixed to subdued portion relentless selling of home shares by the FIIs person prompted investors to support caution,” Prashanth Tapse, Senior VP (Research), Mehta Equities Limited, said.

Among the gainers, Tata Steel jumped implicit 4%.

Bharti Airtel's banal surged astir 4% aft the steadfast reported a much than five-fold leap successful consolidated nett net to ₹16,134.6 crore boosted by consolidation of the Indus Tower concern and benefits of tariff hikes flowing into the quarter.

Zomato, Mahindra & Mahindra, UltraTech Cement and Tech Mahindra were besides the different gainers.

Some stocks from involvement complaint delicate realty and car battalion ended successful the affirmative territory.

“A complaint chopped aimed astatine reviving the slowing system is simply a affirmative indicator. However, yields edged higher arsenic investors were disappointed by the lack of anticipated liquidity measures, starring to profit-booking successful the indices. Additionally, a downward revision successful the near-term maturation forecast, influenced by planetary commercialized policies and ostentation concerns, suggests that the cardinal slope volition follow a cautious and gradual attack to aboriginal complaint adjustments.

“While the broader marketplace underperformed, the metals assemblage gained traction amid expectations of summation successful demand,” Vinod Nair, Head of Research, Geojit Financial Services, said.

Home, car and different loans are apt to spot a driblet successful involvement rates aft the Reserve Bank of India nether a caller politician chopped the cardinal benchmark complaint connected Friday (February 7, 2025) for the archetypal clip successful astir 5 years to spur a sluggish economy.

The Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, slashed the repo complaint by 25 ground points to 6.25%. This was the archetypal simplification since May 2020 and the archetypal revision aft two-and-a-half years.

Mr. Malhotra, a vocation bureaucrat who replaced Shaktikanta Das hardly days aft the past bi-monthly MPC gathering successful December, forecast the Indian system to turn astatine 6.7% successful the fiscal twelvemonth starting April 2025 portion ostentation complaint to little to 4.2%.

For the fiscal twelvemonth ending March 31, RBI quoted the authorities estimation to enactment the maturation complaint astatine 6.4%, its worst successful 4 years and little than 6.6% seen previously, portion the ostentation was pegged astatine 4.8%.

Repo complaint besides decides the returns connected savings and concern products. A higher repo complaint tin pb to amended returns connected fixed deposits and different savings instruments, arsenic banks connection higher involvement rates to pull deposits. On the flip side, little repo rates mightiness trim the involvement earned connected these savings products.

In Asian markets, Seoul and Tokyo settled little portion Shanghai and Hong Kong ended successful the affirmative territory.

European markets were trading mostly lower. U.S. markets ended mostly higher connected Thursday (February 6, 2025).

Global lipid benchmark Brent crude climbed 0.73% to $74.83 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worthy ₹3,549.95 crore connected Thursday (February 6, 2025), according to speech data.

On Thursday (February 6, 2025), the BSE bellwether gauge dropped 213.12 points oregon 0.27% to settee astatine 78,058.16. The Nifty declined 92.95 points oregon 0.39% to 23,603.35.

Published - February 07, 2025 04:33 p.m. IST