The benchmark BSE Sensex declined 379.93 factors or 0.5% to shut at 73,847.15, whereas the broader Nifty 50 index closed at 22,399.15, decrease by 136.70 factors or 0.6%.
The Reserve Financial institution of India reduce its key repo charge by 25 foundation factors to six.00% on Wednesday, marking its second consecutive discount this yr in a bid to counter slowing progress amid rising U.S. tariffs. The transfer, according to expectations, follows the same reduce in February—its first since Might 2020.
In the meantime, U.S. President Donald Trump’s “reciprocal” tariffs took impact on Wednesday, imposing steep duties—together with a 104% levy on Chinese language items—on dozens of nations. The transfer escalates international commerce tensions at the same time as Washington prepares for negotiations with among the affected nations.
Sectoral Watch
Shares of gold mortgage financiers corresponding to Muthoot Finance, IIFL Finance, and Manappuram Finance fell between 2% and seven% after the Reserve Financial institution of India introduced plans to concern complete pointers on gold-backed lending.
Banking shares declined broadly regardless of the speed reduce and dovish coverage stance. Public sector lenders led the slide, with the Nifty PSU Financial institution index dropping 2.5%. Shares of Financial institution of India, Union Financial institution, State Financial institution of India, Indian Financial institution, and Financial institution of Baroda fell as a lot as 4%.Amongst non-public lenders, HDFC Financial institution, YES Financial institution, and ICICI Financial institution shed as much as 3.4%, dragging the Nifty Financial institution index down 0.5%.IT shares, which earn a big share of their income from the U.S., declined 2.2%, whereas the pharma index dropped 2% after U.S. President Donald Trump signaled steep new tariffs on pharmaceutical imports.
In distinction, client shares gained 1.8% after the RBI lowered its inflation forecast for FY26, citing improved city consumption.
Broader markets additionally ended within the purple, with the Nifty Midcap 100 and Nifty Smallcap 100 indices down 0.5% and 0.9%, respectively.
Professional View
Markets slipped after a quick rebound, shedding over half a p.c because the uneven pattern persevered, mentioned Ajit Mishra, SVP, Analysis at Religare Broking, including that the sentiment took a success following the announcement of recent U.S. tariffs on China, resulting in a gap-down opening and a largely range-bound session thereafter.
“The result of the MPC assembly—the place a 25-bps charge reduce was introduced together with a shift to an accommodative stance—didn’t evoke any significant market response,” mentioned Mishra.
He added, “The continuing volatility continues to maintain merchants cautious, and any near-term aid appears unlikely given the current tariff-related developments and the onset of the earnings season. Traders will react to the IT main, TCS’s ends in early trades on Friday, which may affect market course initially. Till volatility, as mirrored by the elevated India VIX, cools off, we suggest sustaining a hedged strategy to navigate potential sharp swings.”
