Sensex drops 440 points and Nifty nears 22,600 ahead of RBI outcome

On Wednesday, benchmark indices in India opened lower as the Sensex dropped 440 points and the Nifty neared 22,600 ahead of the Reserve Bank of India Monetary Policy Committee meeting outcome. The benchmark Sensex opened on a negative note on Wednesday, falling 440 points, or 0.60 per cent to trade at 72,627. At the opening bell, the Nifty 50 index also showed losses, slipping 163 points or 0.72 per cent to stand at 22,613.

Most Sectoral Indices Trade in the Red

The broader market indices were mixed at the open, with the Nifty Midcap 100 slipping 0.40 per cent and the Nifty Smallcap 100 urging 0.16 per cent. India VIX, the fear gauge index, spiked 3.5 per cent to 14.09. On the sectoral front, all indices traded in the red except Nifty Media, while the Nifty Auto and Nifty Metal were down more than 1 per cent each.

Among the constituents of the 30-share Sensex pack, Titan recorded the steepest decline, dropping 3.5 per cent in the wake of its Q2 business update. Asian Paints, M&M, Maruti, BEL, and Bajaj Finserv were other major losers, whereas Bharti Airtel and Bajaj Finance were the only gainers.

Markets Await RBI Decision on Interest Rates

All eyes remained fixed on the RBI MPC decision, which was scheduled to be announced at 10 AM. Ahead of the outcome, most market participants expected that the Reserve Bank of India was set to raise rates for the first time in nearly four years as inflation increased and the rupee neared a record low.

Prior to the market opening on Wednesday, the benchmark yield on the 10-year India bond began the session unchanged at 7.20 per cent as traders awaited the meeting. Similarly, the rupee opened steady at 96.42 against the US dollar.