Key gauges extend losses; RBI keeps repo rate unchanged

Indian equity benchmarks extended losses in morning deals after Reserve Bank of India's Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, decided to keep policy rate unchanged at 5.5 per cent and retained the neutral stance, weighed by concerns over tariff uncertainties. Also, the growth rate projection for FY26 has been retained at 6.5 per cent. Traders also remained cautious as India Ratings and Research (Ind-Ra) in its latest report stated that banks' profitability is set to moderate slightly in the ongoing financial year (FY26) as lenders set aside higher sums of money for covering potential loan losses and a narrowing in net interest margins due to the rate cuts. It expects credit growth to climb up to 13 per cent in FY26, but added that higher tariffs, if they indeed come about, may impact the number. Some concern also came as exchange data showed Foreign Portfolio Investors (FPIs) were net sellers to the tune of Rs 22.48 crore worth of shares in Indian equities on Tuesday. On the global front, Asian markets are trading mixed after weakening US services data fueled uncertainty about the Federal Reserve’s policy path. 

The BSE Sensex is currently trading at 80520.41, down by 189.84 points or 0.24% after trading in a range of 80448.82 and 80834.43. There were 12 stocks advancing against 18 stocks declining on the index. 

The broader indices were trading in red; the BSE Mid cap index fell 0.90%, while Small cap index was down by 1.13%.

The lone gaining sectoral index on the BSE was Bankex up by 0.02%, while Realty down by 2.20%, IT down by 1.36%, Healthcare down by 1.31%, TECK down by 0.95% and Capital Goods down by 0.87% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.32%, Trent up by 1.29%, Kotak Mahindra Bank up by 0.63%, Hindustan Unilever up by 0.56% and Bharat Electronics up by 0.54%. On the flip side, Infosys down by 1.56%, Bajaj Finance down by 1.46%, Tech Mahindra down by 1.43%, Eternal down by 1.36% and TCS down by 1.01% were the top losers.

Meanwhile, with an aim to expand trade and investment, Minister of State for Commerce and Industry Jitin Prasada has said that India is actively involved in the discussions with the US on the proposed bilateral trade agreement (BTA). Prasada said India-US bilateral trade agreement negotiations were launched in March 2025. He said five rounds of negotiations have been held, the last being from July 14-18th, 2025, at Washington. The US team is visiting India from August 25 to hold the next round of trade talks. 

Further, he stated ‘To safeguard the interests of farmers and the domestic industry, international trade negotiations allow for the inclusion of sensitive, negative, or exclusion lists -- categories of goods on which limited or no tariff concessions are granted.’ In addition, in case of surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports.

During 2021-25, the US was India's largest trading partner. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade. With America, India had a trade surplus (the difference between imports and exports) of $35.32 billion in goods in 2023-24. It was $41 billion in 2024-25 and $27.7 billion in 2022-23. In 2024-25, bilateral trade between India and the US reached $186 billion. India exported $86.5 billion in goods while importing $45.3 billion.

Besides, he said the US did not accept India's request for consultations under an agreement of the World Trade Organisation (WTO) concerning American tariffs on steel, aluminium, and related derivative products. Moreover, he said the US has maintained that these measures were introduced on the grounds of national security. India, however, considers these measures to be safeguard actions that should have been notified and subjected to consultations under the WTO's Agreement on Safeguards (AoS). He said India has accordingly reserved its right to suspend substantially equivalent concessions (right to impose equal trade measures in response) due to the US's non-compliance with its obligations under the AoS.

The CNX Nifty is currently trading at 24564.60, down by 84.95 points or 0.34% after trading in a range of 24544.15 and 24671.40. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 1.38%, Trent up by 0.99%, Kotak Mahindra Bank up by 0.58%, Hindustan Unilever up by 0.52% and Bharat Electronics up by 0.48%. On the flip side, Indusind Bank down by 1.91%, Wipro down by 1.79%, Eternal down by 1.69%, Infosys down by 1.68% and Tech Mahindra down by 1.65% were the top losers.

Asian markets are trading mixed; Hang Seng declined 38.53 points or 0.15 to 24,864.00, Taiwan Weighted lost 143.68 points or 0.61 to 23,516.91, Straits Times fell 3.11 points or 0.07 to 4,205.47 and KOSPI dropped 7.18 points or 0.22 to 3,190.82.

On the flip side, Shanghai Composite strengthened 9.94 points or 0.27 to 3,627.54, Jakarta Composite gained 0.09 points or 0 to 7,515.28 and Nikkei 225 surged 177.46 points or 0.44 to 40,727.00.