After the Reserve Bank of India’s (RBI’s) decision to maintain key rates post-monetary policy meeting, the Indian stock market experienced significant selling pressure.
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Nifty 50 Index Performance
The Nifty 50 index observed a decline of approximately 1%, reaching an intraday low of 21,709 and registering a loss of nearly 225 points during Thursday’s trading session.
Sensex Performance Post-RBI Announcement
Following RBI’s announcement to keep repo rates unchanged at 6.5%, the BSE Sensex witnessed a notable sell-off, touching an intraday low of 71,405 and recording a loss of around 750 points in a single day.
Bank Nifty Performance
Similarly, the Bank Nifty index experienced a decline of around 600 points, touching an intraday low of 45,227.
Expert Analysis on Market Reaction
Sunil Nyati, Managing Director of Swastika Investmart, commented on the market’s reaction, attributing it to the cautious stance on inflation and absence of indications for an interest rate cut in the near term.
Outlook for Nifty 50
Sunil Nyati provided a technical outlook for the Nifty 50, identifying immediate resistance and support levels.
Outlook for Bank Nifty
Swastika Investmart’s expert offered insights into the outlook for Bank Nifty, highlighting resistance and potential rally zones.
Expectations for Market Volatility
Divam Sharma, Founder and Fund Manager at Green Portfolio, emphasized the expected continuation of market volatility and advised caution for equity investors.
Sectoral Volatility Forecast
Anil Rego, Founder and Fund Manager at Right Horizons, discussed the sensitivity of the banking sector to rate cycles and expectations regarding rate cuts, highlighting the potential impact on sectors such as NBFCs.