Nifty, Sensex slip after RBI surprises by steady holding rates
Stock brokerage
Indian shares pared early gains to trade lower on Thursdayafterthe country's central bank kept its policy rate unchanged, surprising investors who were expecting at least a 25 basis-point cut.
The NSENifty50 index fell 0.12 per centto 12,28.65 and the S&P BSESensexshed 0.06 per centto 40,824.68 by 0636 GMT.
The Reserve Bank of India (RBI) left its key repo rate unchanged at 5.15 per cent, and said it would continue with an accommodative stanceafterits policy meeting.
Economists polled by Reuters expected the central bank to cutratesfor the sixth time this year.
"While the decision to pause is not entirely unjustified given the clear lack of efficacy of monetary policy actions through the policy rate cut channel, what is worrying is that theRBIdid not announce any unconventional measure but hoped for better transmission of its past actions," said Kunal Kundu, an economist with Societe Generale in Bengaluru.
Expectations of a rate cut were fueledafterIndia's economic growth slowed to 4.5per centin the July-September period, its weakest pace since 2013, piling pressure on Prime Minister Narendra Modi to speed up reforms.
)
Primetime trailer: Robert Pattinson channels Chris Hansen in A24's dark crime thriller
&im=FitAndFill=(700,400))
Why the Su-30MKI is one of the heaviest fighters ever built
&im=FitAndFill=(700,400))
New Friday OTT releases (August 7, 2026): Operation Safed Sagar, Vadhandhi, Main Vaapis Aaunga- 6 movies and TV shows on Netflix, Prime Video and more
)
Rockstar to unveil GTA 6 extended look ahead of November launch
)
US Senate passes sweeping Russia Sanctions Bill targeting energy revenue
)
Thailand teen killed grandparents before shooting teachers at school – What we know about suspect
)
Chilling video shows students take cover as teen opens fire at Thai school
)
Fact Check: Did Obama spend $376 million to build a basketball court at the White House?
)
Reese Witherspoon's father hospitalised after poolside incident in Nashville: Report
)
Major relief for TN CM Vijay as wife Sangeetha withdraws infidelity and divorce petition
)
Unitree Robotics targets $9 billion valuation in landmark IPO backed by DeepSeek and Tencent
&im=FitAndFill=(700,400))
How many soldiers operate one S-400 battery?
)
Trump says Iranian school bombing photos could be AI-generated - 'I don’t think...'
)
Lightning bolt strikes football field in Thailand, killing a player during a match
)
India avoids higher US tariff, secures lower 10% rate. Here's how
)
Double manifestation of glowing orb in Colorado spawns theories - Mind reading orb or balloon?
)
Squadron Leader Bhawana Kanth scripts history as Indian Air Force gets its first woman ‘Top Gun’ pilot
)
‘Fake news’: MEA rejects report claiming India sought defence pact with Israel after Pakistan, Saudi Arabia, Turkey deal
&im=FitAndFill=(700,400))
National Handloom Day 2026: From Alia Bhatt to Samantha Ruth Prabhu; Actresses who celebrated India's textile heritage as brides
)
Mithun Chakraborty undergoes surgery in Kolkata hospital; Chief Minister Suvendu Adhikari visits
)
Secret weapon test blamed for US plane crash that killed four | Gravitas
&im=FitAndFill=(700,400))
Why the Su-30MKI doesn't need external fuel tanks to fly vast distances
)
US sanctions Iran’s crypto network after Strait of Hormuz attacks, offers $15m bounty for intel on IRGC finance
)
Morale plummets on USS Abraham Lincoln: Are US sailors reaching a breaking point? | GRAVITAS
)
Trump calls White House ballroom ruling a 'national disgrace' as court says Congress approval needed
)
Drug-resistant fungus that hides in hair and enters bloodstream reported in 23 US states
)
The Royals enter the Doctor Who universe: King Charles and Queen Camilla beam into Commonwealth Games in TARDIS
)
Pentagon releases new batch of 41 UFO files, including videos and images
)
Reels vs Results: Why political messaging alone won't win over India's young voters
)
India officially names 27 places in Arunachal to counter China's renaming claims
)
'Security can't be bought with Pakistan, Turkey deal': Iran tells Saudi Arabia
)
Smriti Irani’s take on the bittersweet realities of motherhood leaves the Internet emotional: 'You made us cry'
)
Russia forms Ukrainian Volunteer Spetsnaz Brigade to fight Ukraine
)
US loses 23,000 jobs in July as labour market slowdown deepens
)
Border row erupts in Europe after Ceuta crossings, Spain imposes border controls on Italy
)
Technology transfer deal boosts India's defence manufacturing ambitions
TheNiftyhad risen 7.7per centand theSensexhas gained 8.43per centsince the last rate cut in October, mainly due to measures such as reducing the corporate tax rate and hopes of more stimulus.
The benchmark 10-year bond yield rose to 6.5502per centfrom 6.4735 per centbefore the announcement, while the rupee weakened to 71.58 against the USdollar. The local currency stood at 71.5 before the decision.
Among the sectors, theNiftymetals index fell most, shedding 1.32per cent.
Zee Entertainment rose 1.37 per centto the top of theNifty, while Coal India was the biggest laggard, dropping 2.29 per cent.
Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3per centon signs the United States and China were on track for a preliminary trade deal.