Taking Stock: Sensex, Nifty closes lower for third straight sessions

markets

Indian equity markets remained largely indifferent to the Reserve Bank of India’s (RBI) rate cut, with both the Sensex and Nifty closing lower for the third consecutive session. This muted reaction can be attributed to the lack of clear policy direction from the central bank.

At the close of trading, the benchmark Sensex declined by 0.25 percent, shedding 197.97 points to settle at 77,860, while the Nifty slipped 0.18 percent, down 43.4 points to 23,559.95.

The persistent slowdown in economic growth continues to weigh on stocks, with no clear indication of further rate cuts. This uncertainty is reinforced by RBI's statements, including its neutral policy stance, concerns over inflationary risks, and expectations of a moderate rise in core inflation.

The central bank reduced the repo rate by 25 basis points to 6.25 percent—its first cut in nearly five years—to stimulate growth. However, the monetary policy committee maintained a neutral stance and projected modest GDP growth of 6.7 percent for fiscal 2026. The decision comes amid weakening economic momentum and declining corporate earnings over the past two quarters, driven by subdued consumption and sluggish government expenditure.

Investors are now keenly awaiting the monthly US jobs report, which could provide further cues on the future trajectory of interest rates. The report is expected to show 175,000 new jobs added last month, following gains exceeding 200,000 in the previous two months—a recovery partly fueled by the impact of severe hurricanes. Wall Street will also closely analyze revisions to job growth data for the past year, with economists anticipating a downward adjustment, signalling a gradually cooling labour market.

Outlook for February 10

Prashanth Tapse, Senior VP (Research), Mehta Equities

As the rate cut did not spring any major surprise, investors did not find anything interesting in the new RBI governor's comments which resulted in a steady bout of profit-taking in banking, oil & gas, FMCG and power stocks. The ongoing earnings have been mixed to subdued while relentless selling of domestic shares by the FIIs has prompted investors to maintain caution.

Index	Prices	Change	Change%
Sensex	82,626.23	-387.73	-0.47%
Nifty 50	25,327.05	-96.55	-0.38%
Nifty Bank	55,458.85	-268.60	-0.48%

Nifty 50 25,327.05 -96.55 (-0.38%)

Fri, Sep 19, 2025

• 1D
• 5D
• 1M
• 3M
• 6M
• 1Y
• 2Y

Biggest Gainer	Prices	Change	Change%
Adani Enterpris	2,524.00	122.00	+5.08%

Biggest Loser	Prices	Change	Change%
HCL Tech	1,467.40	-26.40	-1.77%

Best Sector	Prices	Change	Change%
Nifty PSU Bank	7397.75	93.75	+1.28%

Worst Sector	Prices	Change	Change%
Nifty Bank	55458.85	-268.55	-0.48%

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty remained volatile as the RBI Governor announced the monetary policy. However, the volatility did not push the index below the 21 EMA on the daily timeframe, signifying a positive short-term trend. The trend is likely to remain positive as long as the index stays above 23,450. On the higher end, resistance is placed at 23,700. A decisive move above 23,700 could lead to a rally toward 24,050.

Vinod Nair, Head of Research, Geojit Financial Services

A rate cut aimed at reviving the slowing economy is a positive indicator. However, yields edged higher as investors were disappointed by the absence of anticipated liquidity measures, leading to profit booking in the indices. Additionally, a downward revision in the near-term growth forecast, influenced by global trade policies and inflation concerns, suggests that the central bank will adopt a cautious and gradual approach to future rate adjustments. While the broader market underperformed, the metals sector gained traction amid expectations of an increase in demand.

Tanvee Gupta Jain, Chief India Economist at UBS Securities

RBI steps in with a 25bps repo rate cut to boost growth. Notably, the policy statement mentioned that household consumption is expected to remain robust aided by the tax relief in the recent Union Budget and moderating inflation. Higher capacity utilisation levels, robust business expectations and government policy support augur well for growth in fixed investment. Global headwinds (excessive volatility in global financial markets, continued uncertainties about global trade policies coupled with adverse weather events), however, continue to impart uncertainty to the outlook and pose downward risks.