Sensex, Nifty Drop as RBI Inflation Outlook Triggers Sell-Off

Sensex, Nifty Decline as RBI’s Inflation Outlook Spurs Profit Booking

India’s key stock market indices, Sensex and Nifty, closed lower today as investors engaged in profit booking after the Reserve Bank of India’s (RBI) inflation projection. Gains made earlier in the session were wiped out by the end of the day.

The S&P BSE Sensex lost 161.71 points to settle at 81,467.10, while the NSE Nifty50 slipped 31.20 points, closing at 24,981.95. According to analysts, the upward revision in inflation estimates for Q3 FY25 heightened concerns about persistently high inflation, prompting investors to take a cautious stance.

Top Gainers and Losers:

Among the top gainers, Cipla surged by 2.58%, followed by Trent Limited with a 2.34% rise. Tata Motors gained 2.09%, while State Bank of India and Tech Mahindra increased by 1.84% and 1.77%, respectively.

On the losing end, ITC led the declines, falling by 3.04%. Nestle India dropped by 2.44%, ONGC lost 1.69%, Reliance Industries fell by 1.67%, and Hindustan Unilever dipped by 1.45%.

Future Outlook:

As the market navigates domestic and global challenges, the upcoming earnings season could heighten volatility. Nifty faced resistance between the 25,150-25,300 range, and a breach of the recent low near 24,700 could trigger a fresh downturn. Nevertheless, the strength seen in IT and pharma sectors provides a glimmer of optimism. Traders are advised to maintain a cautious, hedged approach during this corrective phase.

Aakhir Tak Editor-in-Chief

See Full Bio