Sensex Drops 213 Points, Nifty Falls Below 23650, All Eyes on RBI MPC Outcome

RBI MPC: The Indian stock market closed lower on Thursday as investors remained cautious ahead of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting scheduled for February 7. Market participants are closely watching the central bank’s decision on interest rates, leading to volatility in trading.

Sensex and Nifty Decline Amid Market Uncertainty

The benchmark indices witnessed a downturn, with the Sensex falling by 213.12 points (0.27%) to settle at 78,058.16. The index fluctuated throughout the day, hitting a high of 78,551.66 and a low of 77,843.99.

Similarly, the Nifty dropped by 92.95 points (0.39%), closing at 23,603.35. During the session, Nifty recorded a high of 23,773.55 and a low of 23,556.25. Among Nifty-listed companies, 30 stocks closed in the red.

Top Gainers and Losers in the Market

Several stocks saw significant declines, dragging the market lower. Trent, Bharat Electronics, Bharti Airtel, ONGC, and Titan were the top losers, falling by up to 8.39%.

However, some stocks managed to stay in the green. Adani Ports, Cipla, Infosys, and Dr. Reddy’s Labs saw gains of up to 2.51%, providing some relief to investors.

Broader Market Trends: Midcap and Smallcap Decline

The broader market also faced selling pressure. The Nifty Midcap100 dropped by 1.26%, while the Nifty Smallcap100 declined by 0.30%.

Sectoral indices on the NSE had a mixed performance. Auto, FMCG, Consumer Durables, Realty, and Financial Services sectors witnessed losses, dipping up to 2.19%. However, Banking, IT, Pharma, Private Bank, and Healthcare sectors showed resilience, posting modest gains of up to 0.64%.

Rupee Movement and Commodity Trends

Currency markets also remained in focus. The rupee hovered around 87.30/40 levels, reflecting depreciation in line with other emerging market currencies.

Meanwhile, gold prices traded sideways. On MCX, gold remained around Rs 84,450, while on Comex, it saw a slight pullback towards $2,850.

With the upcoming RBI MPC meeting, investors are expected to tread cautiously. Market experts believe that foreign inflows, especially from tech companies repatriating overseas earnings, could play a crucial role in stabilising the market in the near term.