On August 8, 2024, Indian stock markets experienced a significant downturn as both the Sensex and Nifty50 closed sharply lower. The BSE Sensex dropped by 581.79 points, settling at 78,886.22, while the NSE Nifty50 fell 180.50 points to close at 24,117. Market sentiment was heavily influenced by the Reserve Bank of India’s (RBI) decision to maintain the repo rate at 6.5%, marking the ninth consecutive time the rate has remained unchanged.
Most sectoral indices faced declines, with Information Technology (IT), Metals, and Oil Marketing Companies (OMCs) witnessing the steepest drops. The broader market also saw weakness, as the Midcap and Smallcap indices ended in negative territory. Despite the widespread losses, there were bright spots, particularly in the BSE SME index, which saw gains driven by specific stocks like STAL.
Investor caution was evident throughout the trading session, reflecting concerns over the central bank’s policy stance and global economic uncertainties. Additionally, block deals and initial public offerings (IPOs) were among the few active areas in an otherwise subdued market.
The overall bearish sentiment indicates growing apprehension among investors as they navigate the RBI’s policy decisions and broader economic factors. Moving forward, market participants will likely continue to closely monitor central bank actions and their potential impacts on market dynamics.
