Equity markets saw a decline for the second consecutive day on Thursday, as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision. Retail major Trent witnessed its largest single-day drop in recent months following disappointing quarterly numbers.
The BSE Sensex fell 213.12 points or 0.27% to close at 78,058.16, while the NSE Nifty dropped 92.95 points or 0.39% to end at 23,603.35. The indices initially opened higher tracking strong global cues but later gave up gains due to profit-booking at higher levels.
Vinod Nair, Head of Research at Geojit Financial Services, stated, “The benchmark indices experienced a moderate decline as investors awaited the RBI’s decision on a potential rate cut amidst the ongoing trade war.” He highlighted that the broader markets remained cautious despite the government’s efforts to boost consumption.
Trent was the biggest loser among Nifty stocks, plummeting 8.38% to ₹5,268 after reporting weak quarterly results. Other major decliners included Bharat Electronics Ltd (-3.08%), Bharti Airtel (-2.32%), Titan (-2.23%), and ONGC (-1.99%). On the gaining side, Cipla led with a 2.51% rise, followed by Adani Ports (1.90%), ITC Hotels (1.77%), Dr. Reddy’s (1.01%), and HDFC Life (0.98%).
The Indian rupee hit a historic low of 87.59 against the US dollar during the session. Jateen Trivedi of LKP Securities noted, “Rupee weakened further due to the budget’s middle-class focus and continued FII selling pressure.”
The market breadth remained slightly negative, with 2,030 stocks declining versus 1,908 advances on the BSE. The Nifty Midcap Select fell 0.99%, and Nifty Next 50 declined 0.74%.
Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates pointed out that the volatility index, India VIX, rose by 0.65% to 14.18, indicating increased market volatility. He advised traders to be cautious and trade near support and resistance levels.
Ajit Mishra of Religare Broking mentioned, “Markets extended their decline on the weekly expiry day amid mixed signals.” He added that the committee’s stance on growth and inflation would be closely watched alongside the expected rate cut.
Technical analyst Shrikant Chouhan of Kotak Securities remained cautiously optimistic, stating that the short-term market outlook is still positive. He suggested that the market could bounce back to 23,750-23,800 levels if it holds above the 23,500 support level.
Looking forward, Prashanth Tapse of Mehta Equities observed, “If there is any surprise rate cut, we may see short-term optimism.” The market recorded trading volumes worth ₹4,063 crore, with 69 stocks hitting 52-week highs and 67 touching 52-week lows.
Devarsh Vakil of HDFC Securities highlighted that despite the recent correction, Nifty’s short-term trend remains bullish as it remains above key moving averages, with 23,400-23,450 as crucial support levels.
