Indian equity markets faced a turbulent session on October 9, with benchmark indices erasing early gains to close marginally lower. Despite starting the day in positive territory, the indices slipped amid volatile trading after the Reserve Bank of India (RBI) announced its decision to keep key policy rates unchanged.
RBI Policy Decision
The RBI’s Monetary Policy Committee (MPC) maintained the repo rate at 6.5% for the 10th consecutive time, leaving other key rates like the Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF) also unchanged at 6.75% and 6.25%, respectively. Additionally, the central bank adjusted its stance from “withdrawal of accommodation” to “neutral” in light of persistent inflation and geopolitical concerns.
Market Performance
At market close, the Sensex declined by 167.71 points (0.21%) to end at 81,467.10, while the Nifty slid by 31.20 points (0.12%) to settle at 24,982. Both indices erased significant intraday gains, with the Sensex dropping 852 points from its day’s high, and Nifty losing 252 points.
Key losers included major names like ITC, Nestle, Reliance Industries, ONGC, and HUL. On the other hand, top gainers were Trent, Cipla, Tata Motors, SBI, and Maruti Suzuki. Sectorally, pharma, power, and realty stocks performed well, while FMCG and oil & gas saw declines.
Midcaps and Smallcaps Shine
Mid-cap and small-cap stocks bucked the broader trend, with both indices gaining more than 1%. Over 180 stocks on the BSE reached their 52-week highs, including notable names such as Akzo Nobel, Bosch, Cipla, Coforge, Divis Labs, Infosys, and Torrent Pharma.
Technical Outlook
Analysts believe the Nifty has strong support at 24,750, with resistance around 25,200. A breakout on either side could set the tone for upcoming sessions. As noted by technical experts, Nifty struggled to hold onto its gains and closed just above the 20-day moving average, indicating a short-term positive trend. However, a drop below 24,940 could lead to further correction towards 24,700.
The market remains on edge as investors weigh global uncertainties, including the ongoing geopolitical tensions and inflationary risks.