Markets fall for 2nd day as RBI policy weighs

06 Aug 2025 Evaluate

Indian equity benchmarks ended lower for the second consecutive session on Wednesday 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. 

Some of the important factors in today’s trade: 

US did not accept India's request for consultations at WTO over import tariffs: Minister of State for Commerce and Industry Jitin Prasada has said that 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.

RBI retains growth, lowers inflation forecast: The Reserve Bank 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. 

Banks' profitability to moderate slightly in FY26: India Ratings and Research (Ind-Ra) in its latest report has said 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.

Rupee recovers against US Dollar: Indian rupee recovered from record low level and closed higher against the US dollar, supported by a volatile greenback and the Reserve Bank's decision to hold interest rate steady. 

Global front: European markets were trading mostly in green despite weak factory orders data from Germany and fresh tariff threats from U.S. President Donald Trump on pharma and chips. Asian markets settled mostly higher as Fed rate cut hopes prevailed and U.S. President Donald Trump said the United States was close to a trade deal with China. 

Finally, the BSE Sensex fell 166.26 points or 0.21% to 80,543.99 and the CNX Nifty was down by 75.35 points or 0.31% to 24,574.20.   

The BSE Sensex touched high and low of 80,834.43 and 80,448.82 respectively. There were 11 stocks advancing against 18 stocks declining, while 1 stock remained unchanged on the index.  

The broader indices ended in red; the BSE Mid cap index fell 1.00%, while Small cap index was down by 1.14%.

The lone gaining sectoral index on the BSE was Bankex up by 0.10%, while Healthcare down by 1.72%, IT down by 1.64%, Realty down by 1.55%, TECK down by 1.20% and Industrials down by 0.83% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.19%, Bharat Electronics up by 0.80%, Trent up by 0.79%, Adani Ports &SEZ up by 0.67% and SBI up by 0.56%. On the flip side, Sun Pharma down by 2.33%, Tech Mahindra down by 1.97%, Bajaj Finance down by 1.67%, Infosys down by 1.64% and HCL Technologies down by 1.38% were the top losers.

Meanwhile, the National Council of Applied Economic Research (NCAER) in its Business Expectations Survey has showed that the Business Confidence Index (BCI) rose sharply to 149.4 in the April-June period of 2025-26 from 139.3 in the last quarter of 2024-25. It said the BCI is based on four components -- overall economic conditions to improve in next six months, financial position of firms will improve in the next six months, present investment climate and whether present capacity utilisation was close to or above optimal level. The share of positive responses across the four components remains above 60 per cent in the first quarter and also each component exhibited improving trend compared to the preceding quarter.

Majority of respondents expected production (78.7 per cent) and domestic sales (79.1 per cent) to increase in the next six months. It said sentiments about export of final products also improved (66.5 per cent) in the first quarter of the current fiscal year. It added percentage of firms expecting import of raw materials to rise also increased (54.3 per cent) from the preceding quarter (46.1 per cent), signalling a push in domestic production activities. Regarding sentiments about pre-tax profits, nearly 61 per cent of firms expected them to rise, indicating continued buoyancy.

However, it said buoyancy in business sentiments was not reflected in the labour markets that showed signs of stagnation with both sentiments about hiring and expectations of wage rates remaining unchanged over the next six months. The Business Expectations quarterly survey was carried out in June, covering 479 companies spread across six cities. 

The CNX Nifty traded in a range of 24,671.40 and 24,539.20. There were 12 stocks advancing against 37 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Asian Paints up by 1.94%, HDFC Life Insurance up by 1.88%, Mahindra & Mahindra up by 0.87%, Bharat Electronics up by 0.69% and Coal India up by 0.67%. On the flip side, Wipro down by 2.50%, Sun Pharma down by 2.37%, JIO Financial Services down by 2.06%, Tech Mahindra down by 2.05% and Indusind Bank down by 1.97% were the top losers. 

European markets were trading mostly in green; UK’s FTSE 100 increased 21.07 points or 0.23 to 9,163.80 and France’s CAC rose 11.26 points or 0.15 to 7,632.30, while Germany’s DAX lost 4.07 points or 0.02 to 23,842.00. 

Asian markets settled mostly higher on Wednesday as Federal Reserve rate cut hopes prevailed. While, investors shrugged off a weak lead from Wall Street, where renewed stagflation concerns were fueled by soft US economic data. Moreover, Chinese shares gained after US President Donald Trump said the United States was close to a trade deal with China. Investors are awaiting a slew of Chinese economic data and corporate results coming throughout the week.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,633.99

16.39

0.45

Hang Seng

24,845.00

-57.53

-0.23

Jakarta Composite

7,503.75

-11.44

-0.15

KLSE Composite

1,541.48

2.84

0.18

Nikkei 225

40,802.00

252.46

0.62

Straits Times

4,227.70

19.12

0.45

KOSPI Composite

3,198.14

0.14

--

Taiwan Weighted

23,447.36

-213.23

-0.91


© 2026 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.

×