Sensex, Nifty slip as RBI keeps status quo on policy rate; IT stocks drag market lower

Domestic equity benchmarks Sensex and Nifty50 ended lower on Wednesday after the Reserve Bank of India’s six-member monetary policy committee (MPC) kept the repo rate unchanged at 5.5 per cent, while retaining its policy stance 'neutral.'

At close, the BSE Sensex was down 166.26 points, or 0.21 per cent, at 80,543.99. The NSE Nifty50 declined 75.35 points, or 0.31 per cent, to settle at 24,574.20. The 50-pack index remained bearish throughout the day as the 50-pack index came under selling pressure, holding below the 50EMA throughout the session, said Rupak De, Senior Technical Analyst at LKP Securities. 

“The RSI continued to display a bearish crossover on both the daily and hourly charts. In addition, a lower-top, lower-bottom formation has developed on the hourly chart, indicating a weakening trend. The index is likely to remain a ‘sell on rise’ as long as it stays below 24,850,” De said.

“In the short term, the index may trend downwards towards 24,400, which is expected to act as a crucial support level on a sustained or closing basis. If Nifty sustains below 24,400, it is likely to witness a more serious correction," De added.

Sun Pharma led Sensex losers, falling 2.42 per cent to Rs 1,592.70 apiece. Tech Mahindra fell 1.97 per cent, followed by Infosys (down 1.83 per cent), HCL Technologies (down 1.64 per cent), Bajaj Finance (down 1.62 per cent), and TCS (down 1.02 per cent).

Five stocks namely Infosys, Sun Pharma, Bajaj Finance, TCS and HCL Technologies, contributed most to the Sensex’s decline. 

Among sectoral indices, the BSE IT fell 1.64 per cent, or 563.83 points, to end at 33,906.73. BSE Healthcare declined 1.72 per cent to settle at 43,412.36.

Vinod Nair, Head of Research at Geojit Investments Limited, said that despite renewed trade tensions—stemming from the U.S.—the domestic market remained resilient, holding firm near the key support level of 24,500. The pharma sector underperformed, emerging as a notable casualty of the tariff warnings. 

“As expected, the RBI maintained a neutral stance and kept policy rates unchanged, acknowledging global headwinds while emphasizing India’s domestic resilience, fiscal prudence, and strong rural demand. The inflation outlook has turned more favourable, supported by a good monsoon and healthy kharif sowing,” Nair said.

“In anticipation of improvement in consumption, private investment, and continued government-led capex, the domestic economy appears well-positioned for a better second half, reinforcing investor confidence despite external uncertainties," Nair added

Out of 4,204 stocks that traded on the BSE today, 1,352 advanced, 2,697 declined, while 155 stayed unchanged.