Market snaps 7-day losing streak, Nifty closes above 23,500
At close, the Sensex was up 239.37 points or 0.31% at 77,578.38, and the Nifty was up 64.70 points or 0.28% at 23,518.50.
Benchmark indices erased their previous-session gains amid high volatility as the RBI policy outcome was on expected lines on Thursday.
The Nifty 50 closed with a loss of 181 points, or 0.74%, at 24,117, while the Sensex settled at 78,886.22, down 582 points, or 0.73%.
The India VIX rose over 2% to end at 16.6. The VIX measures market volatility and fluctuations.
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On the sectoral front, the losers were Nifty IT (1.90%), Metal (1.74%), Oil & Gas (1.32%), Realty (1.21%), Consumer Durables (0.83%), and PSU Bank (0.78%). Nifty Bank closed almost flat.
On the Nifty 50, the shares of LTIMindtree (4.09%), Grasim (3.60%) and Asian Paints (3.37%) ended as the top losers.
Shares of Tata Motors (1.63%), HDFC Life (1.57%) and SBI Life (1.22%) ended as the top gainers.
Mid and small-cap indices on the BSE also fell. BSE Midcap index fell 0.44%, while the Smallcap index declined 0.16%.
The overall market capitalisation of BSE-listed firms dropped to nearly Rs 445.8 lakh crore from nearly Rs 448.6 lakh crore in the previous session.
In August, Nifty 50 is down over 3% after two consecutive months of gains. The index is about 4% down from its all-time high of 25,078.30 hit on August 1.
Geopolitical uncertainty is affecting market sentiment. India is also facing the heat over unrest in neighbouring Bangladesh.
Investors worry that a US economic slowdown could have significant global repercussions. Investors’ risk appetites have been low after the weaker-than-expected July employment numbers.
Globally, the diverging monetary policies of major central banks are also contributing to market participants’ nervousness.
US Fed maintained a status quo on policy rates in July and signalled rate cuts could start in September, the Bank of Japan raised interest rates, triggering reverse Yen carry trade and causing a sharp selloff in stocks.
India’s Reserve Bank of India maintained a status quo on policy rates in line with expectations, and maintained its inflation and growth forecast for the current financial year FY25.
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