The Indian stock market closed lower on August 6, 2025, as investors reacted to the Reserve Bank of India’s latest monetary policy decision and rising geopolitical tensions. The BSE Sensex declined by 166.26 points to settle at 80,543.99, while the NSE Nifty 50 dropped 75.35 points to end at 24,574.20.
RBI Policy: No Surprises, But No Comfort Either
- The RBI’s Monetary Policy Committee, led by Governor Sanjay Malhotra, maintained the repo rate at 5.5%, citing resilience in the domestic economy.
- While the decision was widely expected, the lack of dovish signals or fresh liquidity measures disappointed investors.
- Inflation projections were revised downward to 3.1% for FY26, but the RBI remained cautious amid global uncertainty.
Sectoral Snapshot
Lagging Sectors
- Auto: Nifty Auto fell 0.53%, with pressure on Tata Motors and Maruti amid weak demand outlook.
- Realty: Nifty Realty dropped 1.5%, reflecting concerns over rate-sensitive demand and muted earnings.
- IT & Pharma: Nifty IT and Nifty Pharma declined 1.7% and 2%, respectively, dragged by weak global cues and margin concerns.
Gaining Ground
- Public Sector Banks (PSBs): Bucked the trend with gains, supported by strong Q1 earnings and improved asset quality.
- Top Nifty Gainers: Asian Paints (+1.94%), HDFC Life (+1.88%), and M&M (+0.9%) led the pack.
- Top Nifty Losers: Wipro (-2.5%), Aun Pharma (-2.37%), Jio Financial (-2.06%), and Tech Mahindra (-2.05%) were among the worst performers.
Global & Political Overhang
- Market sentiment was further dented by former U.S. President Donald Trump’s threat to impose higher tariffs on Indian goods.
- This follows a recent 25% tariff hike on Indian imports, raising concerns over trade disruptions and export competitiveness.
Broader Market Trends
- Mid and Small Caps: NSE Midcap index fell 0.8%, Smallcap index lost over 1%, indicating broad-based selling.
- Advance-Decline Ratio: Skewed heavily in favor of decliners, reflecting cautious investor sentiment.
Conclusion
The August 6 session marked a pause in the recent rally, as macroeconomic caution and geopolitical jitters weighed on investor confidence. While PSBs offered a silver lining, the broader market remained subdued. Traders and investors will now look toward upcoming earnings reports and global developments for cues.
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