The Indian benchmark index, Sensex ended lower for the second straight session on Wednesday after the Reserve Bank of India (RBI) kept the key repo rate unchanged, maintaining the calibrated tightening stance. The glum mood was further dented by weak cues from global market amid confusion about what Washington and Beijing agreed to in a tariff cease-fire.
The BSE SENSEX closed at 35884.41, down by 249.9 points or by 0.69 per cent, and the NSE Nifty ended at 10782.9, down by 86.6 points or by 0.8 per cent. During the volatile session, Sensex touched intraday high of 36048.65 and intraday low of 35777.81, while the NSE Nifty touched intraday high of 10821.05 and intraday low of 10747.95.
In line with market expectation, Reserve Bank of India, in the fifth bi-monthly monetary policy statement, kept the repo rate, the rate at which the central bank lends money to commercial banks, under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent, for the second consecutive time this year. Consequently, the reverse repo rate under the LAF will remain unchanged at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.
Broader markets witnessed hefty selling with MIDCAP and SMALLCAP indices falling as much as 1.22 per cent and 1.21 per cent, respectively. On the sectoral front, all the thirteen indices ended in red, with metal and auto stocks emerging as top laggards, falling as much as 3.81 per cent and 2.4 per cent, respectively.
Sun Pharmaceutical Industries continued its losing streak for the third straight session on Wednesday and plunged over 6 per cent amid a series of allegations surfaced against the pharma major. Among others, Tata Steel Ltd. (Rs 515.30, 4.27%), Tata Motors Ltd. (Rs 92.50, 3.85%), Vedanta Ltd. (Rs 198.45, 3.74%), Tata Motors Ltd. (Rs 169.20, 3.70%), were notable losers.
On the flip side, Hindustan Unilever Ltd (HUL) emerged as top gainers on BSE after the FMCG major announced the Rs 31,700 crore acquisition of GlaxoSmithKline Consumer Healthcare. Followed by Housing Development Finance Corporation (Rs. 1973.20,+1.75%), HDFC Bank Ltd. (Rs. 2099.45,+0.51%), Wipro Ltd. (Rs. 335.85,+0.40%), Reliance Industries Ltd. (Rs. 1154.85,+0.29%), among others.
Overseas, Asian markets fell on Wednesday, following a rout on Wall Street in overnight trade, amid uncertainty over negotiations between the US and China countries during the next 90 days rose.
Edited by Chitranjan kumar