Markets end flat as RBI hoolds repo rate steady

The domestic share market remained largely unchanged on Wednesday, weighed down by declines in heavyweights like RIL and HDFC Bank which slid 1 percent each. Amid rising inflation and geopolitical uncertainties, the RBI has left key rates unchanged, adjusting its policy stance to 'neutral' from 'withdrawal of accommodation.' The Monetary Policy Committee has maintained the repo rate at 6.5% for the 10th time, along with holding MSF and SDF rates at 6.75% and 6.25%, according to information.
At close, the Sensex was down 167.71 points or 0.21 percent at 81,467.10, and the Nifty was down 31.20 points or 0.12 percent at 24,981.95.BSE Sensex and Nifty 50 indices erased 852 points and 252 points from their day's high.
Trent, Cipla, Tata Motors, SBI and Maruti Suzuki were the top gainers on the Nifty, while losers included ITC, Nestle, Reliance Industries, ONGC, HUL.BSE Midcap and Smallcap indices up more than 1 percent each.
On the sectoral front, except FMCG (down 1.3 percent) and oil & gas (down 0.6 percent), all other indices ended in the green with pharma, power, realty up 1-2 percent.
Rupee Close:
On 09 Oct'24,the Indian rupee traded in a narrow range and settled for the day higher by just one paisa at 83.96  against the U.S. dollar on Wednesday,after the Reserve Bank of India (RBI) kept its key interest rate unchanged and shifted its stance to 'neutral' that may lead to a cut in benchmark rates in forthcoming policies.
Forex traders reportedly stated that the Reserve Bank's monetary policy action was in line with street expectations. Moreover, a muted trend in domestic markets and positive U.S. dollar weighed on investor sentiments.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,an upward revision in Q3FY25 inflation reiterates that the sticky inflation continues to remain a concern for the RBI and led investors to book profit towards the close. The volatility in input prices and the impact on margin dragged the FMCG stocks. The change in RBI's stance to neutral was favourable and expected, but the commentary is not pointing for a rate cut in the near term. Meanwhile, the investor’s sentiment is buoyed on the broad market taking opportunity on a stock-to-stock basis, to capitalise from the recent correction.
Market experts have recommended three stocks to buy or sell today Infosys, Bombay Dyeing, and Tata Chemicals.

(Business Correspondent)