Markets slip ahead of RBI policy; Trent tumbles 8% on weak results 

Equity markets retreated for the second consecutive session on Thursday as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision, with retail major Trent witnessing its steepest single-day fall in recent months following disappointing quarterly numbers.

The benchmark BSE Sensex declined 213.12 points or 0.27 per cent to close at 78,058.16, while the broader NSE Nifty fell 92.95 points or 0.39 per cent to end at 23,603.35. The indices had opened higher tracking strong global cues, but failed to hold onto gains as profit-booking emerged at higher levels.

“The benchmark indices experienced a moderate decline as investors awaited the RBI’s decision on a potential rate cut amidst the ongoing trade war,” said Vinod Nair, Head of Research at Geojit Financial Services. He noted that the broader markets remained cautious despite the government’s focus on boosting consumption.

Trent emerged as the biggest loser among Nifty stocks, plunging 8.38 per cent to ₹5,268 following weak quarterly results. Other major decliners included Bharat Electronics Ltd (-3.08 per cent), Bharti Airtel (-2.32 per cent), Titan (-2.23 per cent), and ONGC (-1.99 per cent). On the gaining side, Cipla led with a 2.51 per cent rise, followed by Adani Ports (1.90 per cent), ITC Hotels (1.77 per cent), Dr Reddy’s (1.01 per cent), and HDFC Life (0.98 per cent).

The Indian rupee hit a historic low of 87.59 against the US dollar during the session. “Rupee weakened further by 0.13rs to 87.57, as the budget’s middle-class focus led to currency weakness, while continued FII selling pressure added to the downside,” said Jateen Trivedi of LKP Securities.

The market breadth remained slightly negative with 2,030 stocks declining versus 1,908 advances on the BSE. The broader market indices underperformed, with the Nifty Midcap Select falling 0.99 per cent and Nifty Next 50 declining 0.74 per cent.

“The volatility index, India VIX, rose by 0.65 per cent to 14.18, indicating an increase in market volatility,” noted Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates. He added that “traders are advised to adopt a cautious approach, buying near support and selling near resistance.”

“Markets extended their decline on the weekly expiry day amid mixed signals,” said Ajit Mishra of Religare Broking, adding that while a 25 basis point rate cut appears priced in, the committee’s stance on growth and inflation will be closely watched.

Technical analysts remained cautiously optimistic. “The short-term texture of the market is still on the positive side,” noted Shrikant Chouhan of Kotak Securities, suggesting that the market could bounce back to 23,750-23,800 levels if it maintains above the 23,500 support level.

Looking ahead, Prashanth Tapse of Mehta Equities observed, “If there is any surprise rate cut, we may see short-term optimism.” The market recorded trading volumes worth ₹4,063 crore, with 69 stocks hitting 52-week highs and 67 touching 52-week lows.

Devarsh Vakil of HDFC Securities pointed out that despite the recent correction of over 200 points from its peak, Nifty’s short-term trend remains bullish as it holds above key moving averages, with 23,400-23,450 serving as crucial support levels.