The Indian stock market closed lower on Wednesday after a volatile trading session, as investors remained cautious amid global uncertainties. Market participants are now closely watching the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting on February 7, where a potential rate cut—the first in five years—could be announced. Additionally, the outcome of the Delhi Assembly elections, scheduled for February 8, is being closely monitored.
The BSE Sensex declined by 312.53 points, or 0.40 per cent, to settle at 78,271.28, having fluctuated between an intra-day high of 78,735.41 and a low of 78,226.26. Meanwhile, the NSE Nifty ended 42.95 points lower at 23,696.30, after touching a high of 23,807.30 and a low of 23,680.45 during the day.
Despite the losses in benchmark indices, select stocks provided support to the market. Adani Ports, IndusInd Bank, Tata Motors, Tata Steel, HDFC Bank, and ICICI Bank were among the top gainers, registering gains between 0.4 per cent and 1.6 per cent. However, selling pressure weighed on Asian Paints, Nestle India, Titan Company, ITC, HUL, and L&T, with Asian Paints leading the decline with a 4 per cent drop.
Broader market indices performed better, with the Nifty MidCap index rising by 1.13 per cent, while the Nifty SmallCap index recorded a stronger gain of 1.99 per cent. Sectoral indices painted a mixed picture, as Nifty FMCG, Realty, Auto, and Consumer Durable indices declined by up to 1.85 per cent, while PSU Bank, Metal, Oil Marketing Companies (OMCs), and Media stocks witnessed buying interest, rising over 1 per cent each.
Aditya Gaggar of Progressive Shares noted that the markets opened strong but faced resistance near the 23,800 level, causing a reversal. Without sustained momentum, the index oscillated between positive and negative territory before settling at 23,696.30, down by 42.95 points. The Media and Energy sectors performed well, while Realty and FMCG stocks saw declines of over 1.5 per cent.
As investors await key developments, market sentiment hinges on the RBI’s potential 25-basis-point repo rate cut, which is expected to align with the budget’s objectives of stimulating economic activity while maintaining fiscal prudence.
