The benchmark Sensex and Nifty declined after the RBI made its policy decision because the central bank increased its inflation forecast and suggested that the rate would remain high for longer.
At 65,688.18, the Sensex finished 308 points, or 0.47 percent, down.
On August 10, the domestic equity market experienced a general selloff despite the Reserve Bank of India (RBI) maintaining the status quo on the repo rate and policy stance in line with expectations. The rate-setting panel did, however, increase the inflation predictions for the current fiscal year as a result of rising prices for vegetables, pulses, and grains.
As the central bank increased its inflation forecast and made hints that the rate would remain high for longer after the policy announcement, equity benchmarks Sensex and Nifty declined.
Sensex opened 50 points lower than the previous close of 65,995.81 at 65,945.39, and it finished the day in the red. At its intraday low of 65,509.14, the index dropped 487 points. Nifty reached a low point of 19,495.40 during the day.
Mixed international cues also failed to improve mood. Investors were waiting for US inflation statistics, which should be released later today, to see what the Fed could do at its upcoming policy meeting.
The RBI raised their CPI projection by 30 basis points to 5.4%, which raised concerns about inflation in the domestic market and raised the possibility of a long-term rate decrease trajectory. According to Vinod Nair, Head of Research at Geojit Financial Services, investors will be eagerly following the US inflation print today and the local inflation report on Monday.
Sensex finally ended 308 points, or 0.47 per cent, lower at 65,688.18 while the Nifty closed the day at 19,543.10, down 89 points, or 0.46 per cent. Rate-sensitive stocks such as HDFC Bank and ICICI Bank were among the top drags on the Sensex index.
Despite finishing lower, the midcap and smallcap indices nevertheless outperformed the benchmark index. The BSE Smallcap index concluded with a loss of 0.15 percent, while the BSE Midcap index finished 0.09 percent lower.
Ajit Mishra, SVP – Technical Research, Religare Broking, commented on the market’s performance today, saying, “Markets remained volatile on the weekly expiry day and lost nearly half a percent.” After the initial decline, the Nifty fluctuated between 19,495 and 19,625 before settling at about 19,543.10 levels.
The bulk of industries traded simultaneously, with FMCG, pharmaceuticals, and banking being the biggest losers. Analysts claim that the larger indices also saw profit-taking and finished in the red.
”Nifty has been battling to maintain the 20 EMA, or short-term moving average, primarily because of the banking pack’s poor performance. It also has to contend with a decreasing trendline that is located around 19,650. All things considered, global cues remain neutral, and any worsening on that front could increase the pressure,” Mishra added.
Here is the list of stocks which are the top gainers and losers during August 10th trading session:
Top gainers: IndusInd Bank (1.59%), JSW Steel (0.88%), Titan Company (0.83), Power Grid Corporation (0.73%), and Mahindra & Mahindra (0.70%)
Top losers: Asian Paints (-2.89%), Kotak Mahindra Bank (-1.63%), ITC (-1.56%), Axis Bank (-1.12%), and Bharti Airtel (-1.05%)
Top gainers: Adani Enterprises (1.67%), Adani Ports (1.63%), IndusInd Bank (1.53%), Titan Company (1.09%), and ONGC (1.07%)
Top losers: Asian Paints (-3%), Kotak Mahindra Bank (-1.87%), Britannia Industries (-1.32%), ITC (-1.24%), and Nestle India (-1.21%)
Top gainers: Zee Entertainment Enterprises (17.95%), Jubilant Pharmnova (11.39%), UTI S&P BSE Sensex Next 50 ETF (11.29%), Varroc Engineering (10.69%), and Max Financial Services (8.53%).
Top losers: Valiant Organics (-10.17%), Reliance Infrastructure (-8.15%), Rattanindia Enterprises Ltd (-7.17%), CMS Info Systems Ltd (-6.95%), and Granules India (-6.31%)