RBI's policy pause leaves bulls in limbo; Nifty below 24,600 mark
The S&P BSE Sensex declined 166.26 points or 0.21% to 80,543.99. The Nifty 50 index fell 75.35 points or 0.31% to 24,574.20. In two consecutive sessions, the Sensex declined 0.59% and the Nifty shed 0.60%.
Sun Pharmaceutical Industries (down 2.33%), Bajaj Finance (down 1.67%) and Infosys (down 1.64%) were major drags on the Nifty today.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 1% and the S&P BSE Small-Cap index fell 1.14%.
The market breadth was weak. On the BSE, 1347 shares rose and 2705 shares fell. A total of 152 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.11% to 11.96.
RBI Monetary Policy Meeting Outcome:
Banking stocks edged lower after the Reserve Bank of Indias Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.5% in its latest review, concluding on 6 August 2025.
The committee maintained its stance amid global uncertainties and a resilient domestic economy, choosing to allow more time for the transmission of its earlier rate cuts. The RBI noted that the global environment remains uncertain, with muted growth and uneven disinflation, although financial volatility has eased somewhat.
The central bank retained its real GDP growth forecast for FY26 at 6.5%, with quarterly projections of 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4. For Q1 FY27, growth is projected at 6.6%, with risks broadly balanced.
On inflation, the RBI lowered its CPI forecast for FY26 to 3.1%, down from the earlier 3.7%. Quarterly inflation is now seen at 2.1% in Q2, 3.1% in Q3, and 4.4% in Q4. CPI inflation for Q1 FY27 is projected at 4.9%. The central bank noted that average inflation this year is expected to remain well below the target, largely due to easing food prices, although inflation may edge above the 4% mark from Q4 onwards.
The RBI highlighted that the full impact of the 100 basis points of rate cuts since February 2025 is still unfolding. Given the current macroeconomic conditions and external risks, the MPC decided to maintain the existing rate and continue with a neutral stance. It also signaled continued data monitoring to guide future policy moves.
The minutes of the meeting will be released on August 20, while the next MPC meeting is scheduled from September 29 to October 1.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 1.12% to 6.395 from the previous close of 6.324.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.7450 compared with its close of 87.8800 during the previous trading session.
MCX Gold futures for 03 October 2025 settlement declined 0.52% to Rs 1,00,810.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.13% to 98.45.
The United States 10-year bond yield jumped 0.93% to 4.235.
In the commodities market, Brent crude for Oct 2025 settlement gained $1.06 or 1.57% to $68.70 a barrel.
Global Markets:
The US Dow Jones index futures are currently up by 174 points, indicating a positive start for US stocks today.
Most European indices advanced on Wednesday, as investors took advantage of recent market weakness, shrugging off fresh U.S. tariff threats and focusing instead on a mixed set of corporate earnings.
Asian indices ended higher as investors digested disappointing economic data and new tariff-related remarks from U.S. President Donald Trump.
Were going to be announcing [tariffs] on semiconductors and chips, which is a separate category, because we want them made in the United States, Trump said on Tuesday stateside, adding that hell announce the new plan within the next week or so.
On Wall Street, the three leading U.S. indexes finished lower Tuesday. The S&P 500 fell 0.49%, closing at 6,299.19, while the Nasdaq Composite slid 0.65% to end at 20,916.55. The Dow Jones Industrial Average moved 61.90 points lower, or 0.14%, to settle at 44,111.74.
U.S. services sector activity unexpectedly flatlined in July, data showed on Tuesday. The Institute for Supply Management (ISM) said on Tuesday its nonmanufacturing purchasing managers index (PMI) slipped to 50.1 last month from 50.8 in June. The data indicated that the employment had weakened further and input costs climbed by the most in nearly three years, underscoring the impact from President Donald Trump's tariff policy.
New Listing:
Shares of National Securities Depository settled at Rs 936 on the BSE, representing a premium of 17% compared with the issue price of Rs 800.
The scrip was listed at Rs 880, exhibiting a premium of 10% to the issue price. The stock has hit a high of Rs 943.85 and a low of Rs 880. On the BSE, 3.70 crore shares of the company were traded in the counter.
Shares of Sri Lotus Developers and Realty settled at Rs 196.85 on the BSE, representing a premium of 31.23% compared with the issue price of Rs 150.
The scrip was listed at Rs 179.10, exhibiting a premium of 19.4% to the issue price. The stock has hit a high of Rs 197 and a low of Rs 176.60. On the BSE, 1.69 crore shares of the company were traded in the counter.
Shares of M&B Engineering settled at Rs 409.15 on the BSE, representing a premium of 6.27% compared with the issue price of Rs 385.
The scrip was listed at 386, at a small premium of 0.26% compared with the initial public offer (IPO) price.
The stock has hit a high of Rs 418.85 and a low of Rs 373.25. On the BSE, 18.45 lakh shares of the company were traded in the counter.
Stocks in Spotlight:
Bharti Airtel rose 0.08%. The company has reported a 103.3% rise in consolidated net profit to Rs 5,948 crore in Q1 FY26 from Rs 2,925 crore in Q1 FY25. Total revenues increased by 28.5% YoY to Rs 49,463 crore in the AprilJune 2025 quarter. The growth was driven by strong momentum in both India and Africa.
Divis Laboratories slipped 4.10% after the pharma majors consolidated net profit declined 17.67% to Rs 545 crore in Q1 FY26 as against Rs 662 crore recorded in Q4 FY25. Revenue from operations also declined 6.79% quarter on quarter (QoQ) to Rs 2,410 crore for the quarter ended 30 June 2025.
Muthoot Capital Services tumbled 11.13% after the lender swung into the red for the June 2025 quarter, posting a net loss of Rs 4.41 crore. The loss marks a stark reversal from the Rs 5.92 crore profit reported in the March 2025 quarter and an even sharper fall from Rs 11.41 crore a year ago. Net interest income (NII) held firm, inching up 1% sequentially to Rs 70.21 crore in Q1 FY26. On an annual basis, NII rose a healthy 25%, suggesting the companys core lending operations remain stable, even as profitability took a hit. Interest income rose 6% QoQ and 45.32% YoY to Rs 145.32 crore.
Pidilite Industries added 1.44% after the company's consolidated net profit jumped 18.60% to Rs 672.41 crore on a 10.53% rise in revenue from operations to Rs 3,753.10 crore in Q1 FY26 over Q1 FY25. The company's board approved a bonus issue in the ratio of 1:1 and a special dividend of Rs 10 per share.
Sandesh surged 19.95% after reporting a 14.95% year-on-year rise in consolidated net profit at Rs 58.04 crore for Q1 June 2025, compared to Rs 50.49 crore a year ago. Net sales rose 6.82% to Rs 73.33 crore from Rs 68.65 crore in the corresponding period of the previous year.
Britannia Industries fell 4.53%. The companys consolidated net profit increased 2.98% to Rs 520.72 crore on 8.75% jump in revenue from operations to Rs 4,622.22 crore in Q1 FY26 over Q1 FY25.
Lupin shed 0.77%. The companys consolidated net profit jumped 52.13% to Rs 1,219.03 crore on an 11.78% increase in income from operations to Rs 6,163.75 crore in Q1 FY26 over Q1 FY25.
Bajaj Auto shed 0.64%. The company posted 5% increase in standalone net profit to Rs 2,096 crore in Q1 FY26 from Rs 1,988 crore in Q1 FY25. For the quarter, the company declared revenue of Rs 12,584 crore, a growth of 6% over the corresponding quarter of the previous year.
EPL surged 2.60% after the companys consolidated net profit jumped 55.76% to Rs 100 crore on 9.98% increase in revenue from operations to Rs 1,107.9 crore in Q1 FY26 over Q1 FY25.
CCL Products (India) tanked 5.46% after the companys consolidated net profit fell 28.88% to Rs 72.44 crore in Q1 FY26, compared with Rs 101.86 crore in Q4 FY25. However, revenue from operations jumped 26.29% Quarter on Quarter (QoQ) to Rs 1,055.63 crore in Q1 FY26.
TD Power Systems added 2.37% after the company reported a 41.65% surge in consolidated net profit to Rs 50.07 crore on 35.83% increase in revenue from operations to Rs 371.90 crore in Q1 FY26 over Q1 FY25.
Container Corporation of India (CONCOR) fell 4.16%. The company reported a 3.24% rise in consolidated net profit to Rs 266.54 crore on a 2.40% rise in revenue from operations to Rs 2,153.63 crore in Q1 FY26 over Q1 FY25.
VRL Logistics tanked 5.39%. The company's standalone net profit surged 272.59% to Rs 50.04 crore in Q1 FY26, compared with Rs 13.43 crore posted in Q1 FY25. Revenue from operations rose 2.35% to Rs 744.33 crore in Q1 FY26, compared to Rs 727.20 crore in Q1 FY25.
Power Finance Corporation (PFC) rose 0.50%. The companys consolidated net profit rose 23.86% to Rs 6,866.26 crore on a 15.46% increase in total revenue from operations to Rs 28,539.04 crore in Q1 FY26 over Q1 FY25. Total income grew by 15.73% year on year (YoY) to Rs 28,628.92 crore in the quarter ended 30 June 2025.
NCC rose 1.80%. The company reported an 8.46% decline in consolidated net profit to Rs 192.14 crore in Q1 FY26, compared to Rs 209.92 crore recorded in Q1 FY25. Revenue from operations also declined 6.31% year-on-year (YoY) to Rs 5,178.99 crore in the first quarter of FY26.
Gland Pharma shed 0.37%. The companys consolidated net profit surged 49.88% to Rs 215.48 crore in Q1 FY26 as against Rs 143.76 crore posted in Q1 FY25. Revenue from operations increased by 7.41% YoY to Rs 1,505.62 crore for the quarter ended 30 June 2025.
IPO Update:
The initial public offer (IPO) of Highway Infrastructure received bids for 1,15,51,56,214 shares as against 1,60,43,046 shares on offer, according to stock exchange data at 16:50 IST on Wednesday (6 August 2025). The issue was subscribed 72 times.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
19 minutes ago
- Time of India
In a flat market, are REITs the sweet spot between growth and safety?
While most asset classes have delivered little cheer over the past year, a quiet corner of the market has steadily rewarded patient investors — Real Estate Investment Trusts (REITs). At a time when the Nifty has remained largely flat, midcaps have swung wildly, and both physical real estate and real estate-linked equities have disappointed, REITs have stayed the course. Take Mindspace Business Parks REIT, which has delivered an impressive return
Time of India
33 minutes ago
- Time of India
Spike in cyber frauds: Chandigarh police, stakeholders get into huddle
Chandigarh: The Chandigarh police convened a meeting with the RBI , department of telecommunications, telecom service providers, and banks to address the rising threat of financial cyber frauds, at the police headquarters, Sector-9, on Wednesday. The meeting aimed to enhance cooperation between law enforcement agencies (LEAs), financial institutions, and telecom service providers (TSPs) to form a united front against complex and evolving cybercrime threats. During the meeting, investigating officers (IOs) and cyber operators were also present, sharing critical on-ground experiences and investigation challenges. Several key issues were discussed during the meeting, including the rise of AI-enabled scams, phishing attacks, mule account operations, and social engineering-based frauds. Participants highlighted operational challenges such as delays in data sharing, lack of support during weekends, and gaps in KYC compliance. Constructive suggestions were made to overcome these challenges through improved coordination and standardised protocols. TSPs were specifically requested to ensure timely sharing of subscriber information, call detail records, live location data, IP logs, and immediate SIM deactivation upon receipt of fraud complaints. They were also urged to maintain the 24x7 availability of their nodal officers to provide prompt support to law enforcement. Banks were advised to take swift action to freeze suspicious accounts, promptly share transaction histories and account details, and strictly adhere to KYC norms to prevent system misuse by cybercriminals. The nodal officers of both TSPs and banks were commended for their consistent cooperation, timely responses, and professionalism in aiding ongoing investigations. It was resolved that such coordination meetings would be organised quarterly to ensure continuous dialogue and proactive response to emerging threats. Participants also emphasised the importance of public awareness. Citizens are encouraged to report suspicious mobile numbers through the Chakshu portal and verify bank account details before making large financial transactions. All stakeholders reiterated their commitment to strictly comply with directions issued by the Department of Telecommunications. The meeting concluded with a collective resolution to strengthen inter-agency coordination, enhance real-time data sharing, and safeguard citizens from the growing menace of financial cyber frauds in the region. Key stakeholders participated in the session, including Gagandeep Kaur, AGM, RBI; Chetan Sharma from the department of telecommunications (DoT/LSA); representatives of leading public and private sector banks; and major telecom service providers. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and s ilver prices in your area.
Time of India
33 minutes ago
- Time of India
HC pulls up TN, CBI for lack of coordination in financial fraud cases
Madurai: Flagging poor coordination between the Tamil Nadu govt and the CBI while dealing with cases involving financial frauds, Madras high court observed that both must be reminded that their loyalty lies with the Constitution and the rule of law, not to convenience, comfort, or political expediency. "What the court is faced with is not merely a procedural delay, but a systemic failure of two public authorities, whose indifference and turf war have derailed the entire purpose of justice. This is not an administrative lapse, but a deliberate erosion of accountability," Justice B Pugalendhi. When state and central agencies behave as if cooperation is a favour rather than a duty, the very idea of a fair investigation collapses, he added. The court was hearing two petitions filed by State Bank of India seeking a direction to the CBI to take necessary actions based on its complaints against private companies relating to loan frauds involving Rs 13.1 crore and Rs 3.8 crore respectively. Justice Pugalendhi observed that despite the alarming magnitude of the frauds and their clear qualification under RBI and the union ministry of finance guidelines for referral to the CBI, the matter has languished without investigation and without even registering the FIR, not due to legal complexity, but due to bureaucratic indifference and institutional arrogance on the part of both the state government and the CBI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15+ Food That Clean Arteries (Most People Ignore) Undo This made the petitioner-bank to knock on the doors of the court by filing these petitions. The judge observed that the damage caused by this kind of conduct is not limited to one case. "What is at stake is the public's faith in the justice system. The petitioner-bank, a statutory institution, complied with all procedural guidelines under the RBI and ministry of finance circulars. And yet, neither the Centre nor the state was willing to act, unless compelled by judicial direction. This is nothing short of a breakdown of institutional responsibility. " Justice is delayed not due to complexity, but due to ego and politics. The court cannot and will not be a silent spectator to such abdication of responsibility," observed Justice Pugalendhi. Noting that the CBI is obligated to act on the complaint received from a public sector bank, subject to the state's consent, the judge said, "once such consent is granted, FIR should be registered without further delay, especially when the complaint clearly discloses a cognisable offence." The chief secretary and the zonal head of CBI shall review the procedural delays and place internal accountability mechanisms in place to ensure such breakdowns do not recur, the judge directed. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and s ilver prices in your area.
