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Sensex, Nifty trade lower ahead of RBI policy outcome
Apr-09-2025

Indian equity benchmarks made a negative start on Wednesday, following the broadly negative cues from Wall Street overnight, as traders remain concerned about rising tensions between the U.S. and China amid the new reciprocal tariffs on imports in to the US. The steeper-than-expected tariffs ignited fears over an economic recession globally. Sensex and Nifty are trading lower in early delas ahead of the Monetary Policy Committee of the Reserve Bank of India announcement of its interest rate decision, with expectations of a 25 basis point rate cut. RBI Governor Sanjay Malhotra to announce the first bi-monthly monetary policy of the current fiscal. Investors will closely monitor the commentary and a potential change in stance for future policy clues.

However, downside remained capped as India and the European Union (EU) are exploring the option of negotiating their free trade agreement (FTA) in phases amidst an uncertain global trade environment following imposition of sweeping tariffs by the US. 

The BSE Sensex is currently trading at 74050.37, down by 176.71 points or 0.24% after trading in a range of 73673.06 and 74103.83. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.03%, while Small cap index was down by 1.28%.

The few gaining sectoral indices on the BSE were FMCG up by 0.47%, Auto up by 0.27% and Utilities up by 0.17%, while IT down by 2.15%, Metal down by 1.71%, TECK down by 1.58%, Realty down by 1.32% and Oil & Gas down by 1.27% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.91%, Hindustan Unilever up by 1.11%, Nestle up by 0.96%, Mahindra & Mahindra up by 0.81% and Bajaj Finserv up by 0.70%. On the flip side, Tech Mahindra down by 2.81%, Tata Steel down by 2.38%, Infosys down by 1.88%, HCL Technologies down by 1.69% and TCS down by 1.39% were the top losers.

Meanwhile, amid the rapidly evolving global trade landscape as a result of US tariffs, Finance Minister Nirmala Sitharaman has said that the resilience of the economy and strength of domestic demand will continue to make India an engine of growth. She asserted that the economy was well placed to capitalise on domestic efficiencies and competitiveness as it tackles global headwinds. She also expressed her optimism over the successful conclusion of the India-UK Free Trade Agreement (FTA) negotiations ‘sooner rather than later’, along with a Bilateral Investment Treaty.

The minister said ‘The world has seen depressed growth for over several years, earlier it was low interest for long and now it’s going to be low growth for long, and that’s not happy news for anybody’. She added ‘India has maintained its fastest growing economy tag continuously now for five years and we still think that momentum may moderate a bit, but it will still be India who will keep that growth… as our growth gets calibrated because of the consumption which exists domestically. It is backed by demand for global-standard goods and that is why globalisation since the 1990s has given India many opportunities’.

She noted that ‘The US is the leading trade partner for India. So, at a time when trade is going to be influenced by tariffs, measures which the US government is taking, we still will have to make sure that the strength that India has in domestic demand as a big magnet which can attract global supplies must be sustained and boosted’. She said the strength of this demand would prove attractive for foreign direct investment (FDI) and international manufacturing to supply for the domestic market and also export from India. She said ‘We think India, and a few emerging markets, are going to be the engines of growth. The global depressed growth, if it has to pick up, will have to be because of these engines’.

The CNX Nifty is currently trading at 22467.85, down by 68.00 points or 0.30% after trading in a range of 22357.00 and 22467.85. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Power Grid Corp up by 2.89%, Hindustan Unilever up by 1.05%, Mahindra & Mahindra up by 0.93%, Nestle up by 0.90% and Bajaj Finserv up by 0.79%. On the flip side, Wipro down by 4.08%, Tech Mahindra down by 2.74%, ONGC down by 2.47%, Tata Steel down by 2.46% and JIO Financial Services down by 2.01% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 1213.07 points or 3.67% to 31,799.51, Taiwan Weighted lost 878.15 points or 4.76% to 17,581.80, Hang Seng declined 312.44 points or 1.55% to 19,815.24, Straits Times fell 74.58 points or 2.15% to 3,394.89 and KOSPI dropped 32.09 points or 1.37% to 2,302.14. On the other hand, Jakarta Composite gained 17.61 points or 0.29% to 6,013.75 and Shanghai Composite was up by 7.41 points or 0.24% to 3,152.96.
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