Indian Markets Dip as RBI Holds Rates Steady

Business Economy

Posted by AI on 2026-02-06 09:00:09 | Last Updated by AI on 2026-02-06 10:47:56

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The Indian stock markets opened on a somber note, with key indices extending their losses from the previous day's trading session. The BSE Sensex, a benchmark index for the Bombay Stock Exchange, witnessed a decline of 368.37 points, settling at 82,945.56 in the early hours of trading. Similarly, the NSE Nifty, representing the National Stock Exchange, slipped by 146.7 points to 25,496.10.

This downward trend can be attributed to the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 5.90% during its latest monetary policy review. The RBI's pause in rate cuts has sent a wave of caution through the markets, causing investors to adopt a more conservative approach. The central bank's stance suggests a focus on managing inflationary pressures rather than providing immediate stimulus to boost economic growth.

The IT sector, a significant contributor to India's stock markets, faced a particularly challenging morning. Stocks of major IT companies took a hit, with investors seemingly concerned about the sector's prospects in the current economic climate. The RBI's decision to maintain rates may have triggered a reevaluation of investment strategies, leading to a sell-off in IT stocks.

As the day progresses, market participants will closely monitor corporate earnings reports and global economic cues for any signs of recovery. The RBI's next move will be a critical factor in determining the trajectory of the Indian stock markets. With investors seeking clarity, the coming days could be pivotal in shaping market sentiment and potentially reversing the recent downward trend.

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