Synopsis : Despite a 25 bps rate cut by the RBI, markets remained under pressure with Sensex and Nifty slipping. Global trade tensions and Trump’s tariff decision add to investor anxiety.
Market Mood: Rate Cut Offers No Relief
Indian stock markets remained volatile on Wednesday, failing to gain momentum even after the Reserve Bank of India (RBI) slashed the repo rate by 25 basis points to 6%. The much-anticipated cut by the Monetary Policy Committee (MPC) was unanimous, but the sentiment on Dalal Street was weighed down by global worries, especially looming US tariffs set to kick in by midnight.
Sensex dipped 378.59 points (0.51%) to 73,848.49
Nifty 50 dropped 144.45 points (0.64%) to 22,391.40
Broader Market Weakness
The pain was even more evident in the broader market indices:
Nifty Midcap 100 fell by 1.47%
Nifty Smallcap 100 declined by 1.45%
This sharp sell-off highlights that investor confidence remains shaky amid mixed economic cues.
Technical Talk: Key Levels to Watch
According to Hrishikesh Yedve, AVP of Technical & Derivatives Research at Asit C. Mehta:
Support: Nifty at 22,320
Resistance: Nifty at 22,800
He added that a sustained move above 22,800 could open up bullish possibilities, but traders must watch these levels closely for any decisive breakout or breakdown.
Global Jitters: Tariffs & Recession Worries
Markets globally are on edge due to the recession fears in the US and the new round of tariffs announced by Donald Trump, taking effect from midnight. This has triggered a risk-off mode among investors, pulling money out of equities and into safer assets.
IPO Plans on Hold
The turbulence in global and domestic equity markets has led to uncertainty over the IPO timelines of LG Electronics India and Ather Energy.
Sources indicate both companies might delay their listings, citing a swift change in sentiment and escalating geopolitical trade tensions.
Disclaimer : This article is for informational purposes only. It does not constitute financial advice or a recommendation to invest. Please consult a certified financial advisor before making investment decisions.
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