Indian indices on Wednesday ended in the red as both the Sensex and Nifty dropped around 0.4% each amid mixed global sentiments.
The Sensex fell 214.85 points, or 0.39%, to close at 54,892.49, while Nifty50 declined 60.10 points to end at 16,356.25. Sectorally, telecom, energy, FMCG, and power stocks, among others, came under selling pressure, while PSU banks and realty stocks received buying support amidst RBI’s monetary policy committee decision to increase repo rate by 50 bps to 4.9%. On Nifty50, Tata Steel, SBI, and Titan made the most gains, while Airtel, ITC, RIL, and UPL were among the biggest laggards.
After a weak start, the indices turned positive as RBI projected a 7.2% GDP growth for FY23, inflation at 6.7, and hiked the policy repo rate by 50 bps to curb inflation. However, soon after, the indices gave up gains to end in the red. European markets opened mostly lower on Wednesday after gains in Asia as investors awaited greater clarity on where interest rates, inflation, and economies are heading. Oil extended gains from the highest close in three months as the US summer driving season ramps up and China emerges from virus lockdowns. Shares rose in Japan, Shanghai, Hong Kong, and Australia, while it ended flat in South Korea.
After hiking the repo rate by 0.50 percent, RBI Governor Shaktikanta Das on Wednesday said future policy actions by the central bank will be guided by the evolving conditions. Addressing a press conference, the governor said the RBI has changed the policy stance to drop the phrase “remains accommodative”, and instead opted for “withdrawal of accommodation” for guiding its future moves.
