Rate Stay Triggers Sell-Off: Sensex Down 700 Points, Nifty Drops 1%

8 Feb 2024 , 01:14 PM

Following the Reserve Bank of India’s decision to maintain the repo rate steady on February 8, benchmark indices witnessed a significant downturn, with the BSE Sensex plummeting by 700 points and the Nifty dropping nearly 1%, primarily driven by a decline in banking stocks.

At 1 PM, the Sensex was down 500.08 points or 0.69% at 71,651.92, while the Nifty recorded a decline of 135.50 points or 0.62% at 21,795. The market breadth remained unfavorable, with 1444 shares advancing, 1764 shares declining, and 65 shares remaining unchanged.

Private banking stocks bore the brunt of the market sentiment, with Axis Bank, ICICI Bank, Kotak Mahindra Bank, and HDFC Bank all witnessing declines exceeding 2%, as no changes were announced by the RBI.

The RBI’s decision to keep the repo rate unchanged at 6.5% and maintain the stance of ‘Withdrawal of Accommodation’ triggered a negative sentiment across various sectors. Auto, bank, and FMCG sectors experienced declines ranging from 0.5 to 1%, while sectors such as oil & gas, power, metal, and PSU banks managed to record gains ranging from 0.5 to 2.5%.

Power Grid Corporation, SBI, BPCL, Hindalco, and Coal India emerged as the top gainers on the Nifty, whereas Britannia, Axis Bank, Nestle, Tata Consumer, and ICICI Bank faced notable losses.