Sensex, Nifty Recover Slightly Post-RBI Move; IT and Pharma Stocks Under Pressure

Across Indian markets, selling pressure remained widespread, with 12 out of 13 major sectors ending lower. Small-cap and mid-cap stocks both fell by 1.3 per cent.

Market Update at 10:15 AM: Indian benchmark indices pared some of their earlier losses on Wednesday after the Reserve Bank of India (RBI) announced an expected interest rate cut to bolster economic growth. However, persistent global trade tensions continued to dampen market sentiment.

At 10:06 a.m. IST, the Nifty 50 was trading 0.38 per cent lower at 22,451.35, while the BSE Sensex slipped 0.24 per cent to 74,046.13. Prior to the RBI’s announcement, both indices were down by around 0.6 per cent.

In its policy move, the RBI reduced the key repo rate for the second time in a row and shifted its monetary stance from "neutral" to "accommodative" to address the slowing economy, which is facing fresh pressure from newly imposed U.S. tariffs.

Meanwhile, U.S. President Donald Trump’s latest round of "reciprocal" tariffs, including a steep 104 per cent duty on Chinese goods, came into effect on Wednesday, escalating global trade tensions even as the U.S. planned new negotiations.

Across Indian markets, selling pressure remained widespread, with 12 out of 13 major sectors ending lower. Small-Cap and Mid-Cap stocks both fell by 1.3 per cent.

Technology stocks, heavily dependent on U.S. revenues, were hit hard, dropping 2.6 per cent, while the pharmaceutical sector declined 1.8 per cent after President Trump’s remarks on potential heavy tariffs on pharmaceutical imports.

Pre-Market Update at 7:45 AM: The domestic equity benchmarks, Sensex and Nifty 50, are likely to open on a weaker note this Wednesday, weighed down by negative global cues. Asian markets were trading in the red, and US stocks also closed lower after the White House pushed ahead with steep tariffs on major trading partners, including a hefty 104 per cent duty on Chinese imports, hurting investor sentiment.

Meanwhile, the Reserve Bank of India (RBI) is set to unveil its first monetary policy decision for FY26 today. The Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, is widely expected to announce a repo rate cut, considering the backdrop of easing inflation and a slowdown in economic growth.

Gift Nifty hovered near the 22,396 mark, trading at a discount of approximately 234.35 points compared to the previous close of Nifty futures. This suggests that Indian stock market indices are likely to open on a weaker note.

The US stock market slipped on Tuesday, erasing early gains and extending its losing streak. The S&P 500 fell below the 5,000 mark for the first time in nearly a year, with the market shedding around USD 5.83 trillion in value over the past four sessions.

The Dow Jones Industrial Average dropped 320.01 points, or 0.84 per cent, finishing at 37,645.59. Meanwhile, the S&P 500 slid 79.48 points, or 1.57 per cent, to close at 4,982.77. The Nasdaq Composite also tumbled, losing 335.35 points, or 2.15 per cent, to settle at 15,267.91.

At an event hosted by the National Republican Congressional Committee on Tuesday, former President Donald Trump announced that the United States will soon impose a significant tariff on pharmaceutical imports, according to Reuters. Trump mentioned that the move is aimed at encouraging drug manufacturers to shift their operations back to the U.S.

Crude oil prices continued their downward slide, hitting their lowest levels in four years, as escalating trade tensions raised concerns over a slowdown in global energy demand. Brent crude slipped by 2.90 per cent to settle at USD 61.00 per barrel, while US West Texas Intermediate (WTI) futures fell by 3.44 per cent, closing at USD 57.53.

Asian markets were under pressure on Wednesday as investor sentiment took a hit ahead of the implementation of new U.S. tariffs, including a hefty 104 per cent duty on China, set to take effect at midnight in the U.S. Japan’s Nikkei 225 tumbled 3.14 per cent, while the Topix index recorded an even sharper loss of 3.26 per cent. In South Korea, the Kospi edged down by 0.18 per cent, and the Kosdaq slipped 0.44 per cent. Meanwhile, futures tied to Hong Kong’s Hang Seng index suggested a softer start to trading.

After a steep decline in the previous session, the Indian stock market bounced back sharply on Tuesday. Both benchmark indices posted strong gains of around 1.5 per cent each. The Sensex jumped 1,089.18 points, or 1.49 per cent, to end the day at 74,227.08, while the Nifty 50 climbed 374.25 points, or 1.69 per cent, to close at 22,535.85.

On April 08, 2025, foreign institutional investors (FII) sold shares worth Rs 4,994.24 crore, while domestic institutional investors (DII) bought shares worth Rs 3,097.24 crore.

Stocks that are banned for trading in the F&O segment on April 09, 2025, are Birlasoft Ltd, Hindustan Copper Ltd and Manappuram Finance Ltd.

Disclaimer: The article is for informational purposes only and not investment advice.