Markets end lower after MPC keeps repo rate unchanged

Indian equity markets ended lower on Friday as investors reacted to the Monetary Policy Committee (MPC) decision and continued to assess global economic uncertainties.

The benchmark indices closed lower, with the Nifty declining 49.85 points, or 0.21 per cent, to settle at 23,366.70. The Sensex also slipped 116.67 points, or 0.16 per cent, to close at 74,243.34.

Commenting on Nifty technical outlook, experts said that the 23,450–23,550 region continues to serve as a key immediate resistance zone.

“A sustained breakout above this band could improve market sentiment and open the door for a recovery toward the 23,750–23,800 levels,” as per the analayst.

“On the downside, the 23,250 area remains an important near-term support level. Sustaining above this zone will be crucial to preserve the current structure,” the analyst stated.

Among individual stocks, Hindalco Industries, Wipro, and Trent emerged as the top losers in the Nifty index.

Broader markets also ended weak, with the Nifty MidCap index falling 0.35 per cent and the Nifty SmallCap index declining 0.06 per cent.

Sectoral trends showed weakness in IT and metal stocks, while the media sector managed to outperform the broader market.

The market sentiment remained cautious after the Monetary Policy Committee decided unanimously to keep the policy repo rate unchanged at 5.25 per cent, maintaining a neutral stance amid rising global uncertainties.

The Reserve Bank of India also announced a series of measures aimed at boosting foreign inflows into domestic financial markets.

These include increasing investment limits in equities for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), along with expanding the list of government securities under the Fully Accessible Route (FAR).

Market experts said that the investors remained focused on the policy signals and global cues, leading to a muted close for domestic equity markets.

“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 explained.

(IANS Inputs)

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