{"id":3881,"date":"2025-02-07T11:00:05","date_gmt":"2025-02-07T11:00:05","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=3881"},"modified":"2025-02-07T11:00:05","modified_gmt":"2025-02-07T11:00:05","slug":"sensex-nifty-decline-for-third-consecutive-session-as-rbi-rate-cut-fails-to-lift-sentiment","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/sensex-nifty-decline-for-third-consecutive-session-as-rbi-rate-cut-fails-to-lift-sentiment\/","title":{"rendered":"Sensex, Nifty Decline for Third Consecutive Session as RBI Rate Cut Fails to Lift Sentiment"},"content":{"rendered":"

Mumbai, February 7, 2025<\/strong> \u2013 Indian equity markets ended lower for the third straight session on Wednesday, as the Reserve Bank of India (RBI)<\/strong>‘s much-anticipated 25-basis-point repo rate cut<\/strong> failed to boost investor sentiment. Despite the central bank lowering the repo rate to 6.25%<\/strong>\u2014the first cut in nearly five years\u2014volatility persisted as concerns over foreign investor outflows and lack of additional liquidity-easing measures weighed on banking stocks.<\/p>\n

At close, the BSE Sensex<\/strong> fell 197 points<\/strong> or 0.3%<\/strong> to 77,860<\/strong>, while the NSE Nifty 50<\/strong> declined 43 points<\/strong> or 0.2%<\/strong> to 23,559<\/strong>. Market breadth remained weak, with 1,468 stocks advancing<\/strong>, 2,293 declining<\/strong>, and 139 remaining unchanged<\/strong>.<\/p>\n

Banking Sector Under Pressure Amid FII Selling<\/strong><\/h3>\n

The banking sector<\/strong> bore the brunt of selling pressure, as major players like ICICI Bank<\/strong> and State Bank of India (SBI)<\/strong> dragged the Nifty Bank index down 0.6%<\/strong>. Analysts attributed this to the absence of additional liquidity measures<\/strong> from the RBI\u2019s policy statement.<\/p>\n

“The rate cut is a welcome move, but foreign institutional investors (FIIs) remain net sellers. Market participants are cautious, knowing that without strong liquidity support, rallies may not be sustained,”<\/em> said V K Vijayakumar<\/strong>, Chief Investment Strategist at Geojit Financial Services<\/strong>.<\/p>\n

FIIs have offloaded \u20b99,709 crore worth of Indian equities in February alone<\/strong>, adding to concerns about near-term market weakness.<\/p>\n

Sectoral Performance: Metals Shine, IT and FMCG Lag<\/strong><\/h3>\n

Among sectoral indices<\/strong>, only four out of the 13 major indices<\/strong> ended in positive territory. The Nifty Metal index surged 2.5%<\/strong>, fueled by optimism over increased infrastructure and real estate activity<\/strong>, both of which are expected to benefit from lower interest rates.<\/p>\n

Top Gainers:<\/strong><\/p>\n

    \n
  • JSW Steel, Tata Steel, Jindal Steel, and Welspun Corp<\/strong> rose 3\u20137%<\/strong>, benefiting from expectations of higher demand for industrial metals.<\/li>\n
  • Bharti Airtel surged 4%<\/strong> after posting strong quarterly results, driven by a one-time gain and tariff hikes<\/strong>.<\/li>\n<\/ul>\n

    Top Losers:<\/strong><\/p>\n

      \n
    • ONGC, ITC, SBI, Adani Ports, and Britannia<\/strong> fell 1\u20133%<\/strong>, dragging down the Nifty 50.<\/li>\n
    • Bikaji Foods tumbled 10%<\/strong> after reporting a 40% drop in net profit<\/strong> to \u20b927.77 crore<\/strong> for Q3.<\/li>\n
    • Sonata Software slumped 11%<\/strong> due to weaker-than-expected margins<\/strong>, despite strong revenue growth.<\/li>\n
    • Ola Electric dropped over 4%<\/strong>, widening its Q3 net loss to \u20b9564 crore<\/strong> from \u20b9376 crore<\/strong> in the same period last year.<\/li>\n<\/ul>\n

      Real Estate and Auto Sectors Poised for Growth<\/strong><\/h3>\n

      Real estate and auto stocks showed resilience, as analysts expect the rate cut to boost home loan demand and discretionary consumption<\/strong>.<\/p>\n

      “Lower borrowing costs should improve home affordability and stimulate growth in the real estate sector. However, we are yet to see an immediate market reaction,”<\/em> said Shishir Baijal<\/strong>, Chairman & MD of Knight Frank India<\/strong>.<\/p>\n

      The Nifty Auto index<\/strong> remained strong, buoyed by expectations of increased consumer spending post-budget<\/strong>.<\/p>\n

      Global Trade Uncertainty Adds to Caution<\/strong><\/h3>\n

      Economists also pointed to mounting global trade tensions<\/strong>, with the United States imposing fresh tariffs<\/strong>\u201425% on Canada and Mexico and 10% on Chinese goods<\/strong>\u2014citing concerns over illegal immigration and drug trade<\/strong>.<\/p>\n

      “A global trade war could disrupt India’s growth, inflation, and trade dynamics, but the full impact remains unclear,”<\/em> said Rajani Sinha<\/strong>, Chief Economist at CareEdge Ratings<\/strong>.<\/p>\n

      Technical Outlook: Nifty\u2019s Key Levels to Watch<\/strong><\/h3>\n

      From a technical perspective<\/strong>, analysts suggest that Nifty 50 has strong support at 23,450\u201323,500<\/strong>.<\/p>\n

      “As long as Nifty stays above this range, an eventual breakout is likely. However, resistance lies at 23,720\u201323,800,”<\/em> said an analyst at Indiacharts<\/strong>.<\/p>\n

      With FIIs building significant short positions<\/strong>, market watchers expect volatility to persist in the near term.<\/p>\n

      Outlook:<\/strong> While the rate cut<\/strong> is a positive development, sustained foreign investor outflows<\/strong>, global trade uncertainties, and lack of immediate liquidity measures<\/strong> from the RBI could continue to weigh on sentiment in the coming sessions.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Mumbai, February 7, 2025 \u2013 Indian equity markets ended lower for the third straight session on Wednesday, as the Reserve Bank of India (RBI)‘s much-anticipated 25-basis-point repo rate cut failed to boost investor sentiment. Despite the central bank lowering the repo rate to 6.25%\u2014the first cut in nearly five years\u2014volatility persisted as concerns over foreign […]<\/p>\n","protected":false},"author":1,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[41],"class_list":{"0":"post-3881","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":41,"user_id":1,"is_guest":0,"slug":"niftynews","display_name":"NiftyTrader","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=3881"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3881\/revisions"}],"predecessor-version":[{"id":3883,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3881\/revisions\/3883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/3882"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=3881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=3881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=3881"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=3881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}