Sensex, Nifty End Flat as RBI Holds Repo Rate at 6.5%

Markets Steady After RBI's Status Quo

Indian stock markets closed flat on Wednesday as the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5%, in line with street expectations. The Sensex settled 12 points lower at 79,412, while the Nifty ended 4 points down at 24,172, reflecting a lack of directional cues.

Traders said the RBI's decision to maintain the status quo was widely anticipated, and the policy statement offered no surprise on liquidity measures. The central bank, however, reiterated its commitment to bring inflation within the 4% target on a durable basis.

Banking and Auto Stocks Weigh

Banking stocks, which had rallied in the previous session, witnessed mild profit booking. HDFC Bank and ICICI Bank ended marginally lower, while SBI slipped 0.5%. The Nifty Bank index closed down 0.3%.

Auto stocks also came under pressure after the RBI's commentary on rural demand was seen as cautious. Maruti Suzuki and Mahindra & Mahindra declined nearly 1% each. On the other hand, IT stocks provided some support, with Infosys and TCS ending in positive territory.

Midcaps Outperform Slightly

The broader market showed resilience, with the Nifty Midcap 100 index closing 0.2% higher. Smallcap stocks too ended on a firm note, as retail investors continued to chase opportunities in select pockets.

Among sectoral indices, FMCG and pharma ended higher, while realty and metal indices closed flat. The rupee remained stable at 83.60 against the US dollar.

What's Next for Investors

Market participants now turn their attention to the US Federal Reserve's policy meeting scheduled next week. A rate cut by the Fed could influence foreign fund flows into emerging markets like India.

Analysts suggest that the RBI's steady stance provides a stable backdrop, but investors should watch for global cues and monsoon progress for further direction. The market is expected to remain range-bound in the near term.