Sensex falls by 160 pts on sell-off in IT, healthcare shares as RBI keeps rate unchanged
Mumbai, Aug 6 (PTI): Falling for the second day, benchmark BSE Sensex declined by 160 points on Wednesday due to selling in IT and healthcare shares amid the RBI policy decision to keep the key interest rates unchanged.
The 30-share BSE Sensex fell 166.26 points or 0.21 per cent to settle at 80,543.99 with 18 of its constituents ending lower and 12 with gains. During the day, it declined 261.43 points or 0.32 per cent to hit a low of 80,448.82.
The 50-share NSE Nifty dipped 75.35 points or 0.31 per cent to close at 24,574.20. In the intraday session, the index decreased 110.35 points or 0.44 per cent to hit a low of 24,539.20.
Among the Sensex firms, Sun Pharmaceuticals, Tech Mahindra, HCL Technologies, Infosys, Bajaj Finance, Eternal, Tata Consultancy Services, UltraTech Cement, Bajaj Finserv, Tata Steel, ITC and L&T were the major laggards.
Asian Paints, Mahindra & Mahindra, BEL, Adani Ports, State Bank of India, Trent, HDFC Bank were among the gainers.
"Despite renewed trade tensions—stemming from the U.S.—the domestic market remained resilient, holding firm near the key support level of 24,500. The pharma sector underperformed, emerging as a notable casualty of the tariff warnings," Vinod Nair, Head of Research, Geojit Investments, said.
The Reserve Bank of India (RBI) kept its policy interest rate unchanged on Wednesday, as policymakers weighed the risks posed by US President Donald Trump's trade policies and the uncertainties surrounding the potential for higher tariffs.
The RBI also retained the GDP growth projection for the current fiscal year at 6.5 per cent while lowering the inflation forecast to 3.1 per cent from 3.7 per cent.
The BSE smallcap gauge declined 1.14 per cent and the midcap index by 1 per cent.
Among sectoral indices, Focused IT fell by 1.78 per cent, followed by Heathcare (1.72 per cent), IT (1.64 per cent), Realty (1.55 per cent), Teck (1.20 per cent), Industrials and Capital Goods (0.83 per cent each), FMCG (0.80 per cent), Telecommunication (0.75 per cent) were among the laggards.
Bankex is the only gainer.
The market capitalisation of BSE-listed firms eroded by Rs 3,50,296.28 crore to Rs 4,45,19,999.04 (USD 5.08 trillion) in two days of fall in the equity market.
"Participants were awaiting the outcome of the MPC meeting, which was in line with expectations, as the policy rate remained unchanged and the neutral stance continued. As a result, there was no significant market reaction," Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
In Asian markets, Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng closed in the positive territory, while South Korea's Kospi settled on a flat note.
The European markets are trading in the green territory. The US markets ended lower on Tuesday.
Global oil benchmark Brent crude rose 1.61 per cent to USD 68.73 a barrel.
Foreign Institutional Investors offloaded equities worth Rs 22.48 crore while Domestic Institutional Investors purchased equities worth Rs 3,840.39 crore on Tuesday, according to exchange data. Sensex fell by 308.47 points to close at 80,710.25 and Nifty dipped 73.20 points to 24,649.55 on Tuesday.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
