Stock Market Today: Sensex Down by 166 Points, Nifty 50 Drops Below 25,600 - 10 Key Highlights

The Reserve Bank of India ’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, kept the repo rate unchanged at 5.5% on Wednesday, August 6. While the move was in line with market expectations, the absence of any dovish cues or fresh stimulus left investors unimpressed.

Following the announcement, the Sensex slipped 166.26 points to settle at 80,543.99, while the Nifty dropped 75.35 points to close at 24,574.20. Pressure extended to broader markets as well, with the NSE Midcap index down 0.8% and the Smallcap index falling over 1%.

1. What Dragged the Market Down Today?

• The RBI maintained a 'neutral' policy stance, disappointing investors looking for signs of easing or supportive measures for growth.

• Governor Malhotra said the economy remains stable but flagged concerns over global uncertainty, muted trade, and geopolitical risks.

• Inflation projections were lowered to 3.1% for FY26, but the RBI remained cautious due to unpredictable data trends.

• Adding to investor nerves, former U.S. President Donald Trump threatened to raise tariffs on Indian goods, accusing India of reselling Russian oil for profit. This follows a recent 25% duty already imposed on certain Indian imports.

The twin pressures of policy inaction and rising global tensions led to profit-booking across sectors, dragging major indices lower.

2. Top Gainers on Nifty 50

Out of the 50, only 13 stocks closed in the green. Asian Paints led the pack with a 1.94% rise, followed by HDFC Life (up 1.88%) and M&M (up 0.9%).

3. Top Losers on Nifty 50

Wipro was the worst performer, slipping 2.5%, followed by Aurobindo Pharma (down 2.37%), Jio Financial (down 2.06%), and Tech Mahindra (down 2.05%).

4. Sector Performance

Post-RBI policy, rate-sensitive sectors showed mixed reactions:

• Flat: Nifty Bank and Financial Services

• Down: Nifty Auto (-0.53%) and Realty (-1.5%)

• Other Laggards: Nifty IT (-1.7%), Pharma (-2%), FMCG (-0.9%), Metal (-0.4%)

5. Most Active Stocks (By Volume)

• Lotus Developers: 9.18 crore shares

• Transrail Lighting: 2.70 crore shares

• Sarda Energy & Zinka Logistics: 2.09 crore shares each

6. Circuit Hits

• Upper Circuit: 62 stocks

• Lower Circuit: 95 stocks

7. Market Breadth

Out of 3,066 NSE-listed stocks:

• Advances: 835

• Declines: 2,133

• Unchanged: 98

8. 52-Week Highs

35 stocks hit new 52-week highs, including:

• Authum Invest, Godfrey Phillips, TVS Motor, Fortis Health, Vishal Mega Mart, Delhivery, and Sarda Energy.

9. 52-Week Lows

83 stocks hit their 52-week lows. Notable names:

• Ease My Trip, Balaxi Pharma, Brigade Hotel Ventures, Lotus Developers.

10. Rupak De, Senior Technical Analyst at LKP Securities

“Nifty remained bearish throughout the day as the index stayed under selling pressure, holding below the 50EMA throughout the session. The RSI continued to display a bearish crossover on both the daily and hourly charts. In addition, a lower-top, lower-bottom formation has developed on the hourly chart, indicating a weakening trend. The index is likely to remain a “sell on rise” as long as it stays below 24,850. In the short term, the index may trend downwards towards 24,400, which is expected to act as a crucial support level on a sustained or closing basis. If Nifty sustains below 24,400, it is likely to witness a more serious correction.”

Disclaimer: This article is intended for informational and educational purposes only. The opinions and recommendations expressed are those of individual analysts or brokerage firms and do not reflect the views of NewsPoint. Investors are advised to consult certified financial advisors before making any investment decisions.