News

The Indian stock market logged another lower session as initial optimism faded after the RBI left the benchmark interest rate unchanged on Wednesday, triggering a sell-off in rate-sensitive stocks and dragging benchmark indices down for the second straight day.

The Nifty 50 closed 0.27% lower at 24,582, while the S&P BSE Sensex slipped 0.10% to 80,632. Broader markets saw sharper declines, with the Nifty Midcap 100 tumbling 0.77% and the Nifty Smallcap 100 falling 1.10%.

Today's decline was led by pharma stocks after Donald Trump said he would raise tariffs on pharmaceutical imports by over 250%. Rate-sensitive sectors such as autos, financials, and FMCG also ended the session lower.

As expected, the Indian central bank kept the policy repo rate unchanged at 5.5% and retained its ‘Neutral’ stance in the August MPC meeting, citing inflation stability and geopolitical uncertainty. This follows a cumulative 100 basis point rate cut earlier this year.

The pause came amid US President Donald Trump’s threat to impose higher tariffs on India due to New Delhi's continued oil imports from Russia. On Tuesday, Trump said he would raise tariffs on India “very substantially over the next 24 hours,” adding that while India is set to offer the US “zero tariffs” under a trade deal, it would not be sufficient given its purchase of Russian oil.

Earlier on Monday, Trump had similarly warned of substantial tariff hikes, accusing India of buying “massive amounts of Russian oil” and selling it “on the open market for big profits.”

Meanwhile, RBI Governor Sanjay Malhotra indicated that the impact of potential tariffs from the Trump administration on India is difficult to predict.

In a post-press conference, Malhotra said: “On growth, you are very well aware that we had already reduced our forecast from 6.7% to 6.5%, so some of the global uncertainties have already been factored into the revised growth outlook.”

Transformers & Rectifiers led the losers’ pack, crashing 6.57% after a strong rally following the release of its June-quarter numbers. Bosch was another major laggard, falling 5.76% to ₹38,255 after the company’s Q1 performance disappointed investors.

Meanwhile, Balkrishna Industries saw its shares decline for the fifth consecutive trading session, dropping another ₹2398 as investor sentiment remained weak toward the tyre maker after it reported a 40% YoY drop in net profit to ₹287 crore last week. Redington also closed 5.45% lower at ₹239.20.

Welspun Living shares continued to drift lower amid Trump’s tariff threats on India. Other stocks, including Bayer Cropscience, Eris Lifesciences, CCL Products India, RHI Magnesita India, PG Electroplast, Godawari Power & Ispat, and Wockhardt, also ended the session with over 5% cuts.

Additionally, Britannia and Coforge shares closed 4.4% and 4.2% lower, respectively.

While overall sentiment remains weak amid rising tariff warnings from the White House, some stocks managed to buck the trend. Godfrey Phillips India led the gains, surging another 10% to ₹10,861, taking its total gains in 2025 to over 100% and placing it among the year’s top-performing stocks.

Demand for the counter remains strong following its stellar June-quarter performance. Sarda Energy & Minerals also extended its post-Q1 rally, climbing another 9.3% to ₹590 apiece.

Kirloskar Oil Engines and Waaree Energies jumped 6.1% and 5.2%, respectively. Meanwhile, Reliance Power rose 5%, snapping its extended losing streak.

Other notable gainers included Gujarat Fluorochemicals, IIFL Finance, Tube Investments of India, Union Bank of India, Swiggy, Asian Paints, Blue Star, and NCC, which gained between 2% and 4.1%.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.