Sensex and Nifty close in red as investors react to RBI policy, global uncertainty

Market closes in red. Representational Pic

Indian domestic equity benchmarks ended the trading session on a weaker note, reported IANS.

The Sensex slipped 116.67 points, or 0.16 per cent, to settle at 74,243.34. The Nifty index also ended lower, falling 49.85 points, or 0.21 per cent, to close at 23,366.70.

Market sentiment remained cautious as investors evaluated the RBI's policy decision and global economic signals.

Key technical levels for Nifty

Experts said the Nifty is currently moving within a defined range, with important technical levels acting as resistance and support.

According to analysts, the 23,450-23,550 zone remains a strong resistance area.

"A sustained breakout above this band could improve market sentiment and open the door for a recovery toward the 23,750-23,800 levels," an analyst said. On the downside, the 23,250 level is seen as crucial support. "Sustaining above this zone will be important to preserve the current structure," the analyst added, reported the news agency.

Sector and stock performance

Among individual stocks, Hindalco Industries, Wipro and Trent were among the top losers on the Nifty index.

Broader markets also ended in the red. The Nifty MidCap index fell 0.35 per cent, while the Nifty SmallCap index declined 0.06 per cent.

Sector-wise, IT and metal stocks remained under pressure, while the media sector managed to outperform the broader market trend.

RBI policy impact on sentiment

Investor sentiment was influenced by the Monetary Policy Committee's decision to keep the repo rate unchanged at 5.25 per cent, maintaining a neutral stance amid global uncertainty, reported the news agency.

The Reserve Bank of India also announced steps to encourage foreign investment flows, including higher limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), as well as expansion of the Fully Accessible Route (FAR) for government securities, as per reports.

Market participants said investors are closely tracking both domestic policy signals and global economic trends. "From a broader perspective, today's market action suggests investors are interpreting the RBI policy as a balancing act between growth and macroeconomic stability," a market expert said, as per the news agency.

Overall, analysts said the session reflected cautious trading as markets consolidated after recent gains.

(With IANS Inputs)