Share Market Closing Bell: On Thursday, August 8, 2024, the Share market closed in the red after the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5%.
The Sensex closed at 582 points down at 78,886.22, Nifty concluded at 180.50 points down at 24,117.00 and Nifty Bank just closed in green with a slight gain of 0.08%.
The share market initially reacted with volatility, but eventually ended the day with losses across major indices.
The RBI’s decision to maintain the repo rate was in line with market expectations, but the lack of any additional measures to stimulate growth disappointed investors.
Top Losers: LTIMindtree, Grasim Industries, Asian Paints, Power Grid Corp, and Infosys were among the top losers on the Nifty.
Top Gainers: HDFC Life, Tata Motors, SBI Life Insurance, HDFC Bank, and Cipla were among the few gainers.
Analysts View on Today share market down performance
The Indian share market’s downward performance on August 8, 2024, after the RBI’s decision to maintain the repo rate has elicited mixed reactions from analysts. While the RBI’s move was widely anticipated, the absences of additional measures to stimulate growth and the cautious stance on inflation have led to some disappointment among investors.
Negative Sentiment:
Lack of Growth-Boosting Measures: Some analysts believe that the RBI could have taken additional steps to spur economic growth, such as providing further liquidity support or cutting the cash reserve ratio (CRR). The absence of such measures has dampened investor sentiment.
Inflation Concerns: The RBI’s cautious approach towards inflation and the possibility of future rate hikes have also raised concerns among investors, who were hoping for a more dovish stance.
Positive Outlook:
Focus on Stability: Other analysts view the RBI’s decision as a prudent move, emphasizing the importance of maintaining price stability in the face of elevated inflation.
Long-Term Growth: Some experts believe that the focus on stability will ultimately pave the way for sustainable long-term growth, even if it means sacrificing some short-term gains.
Sectoral Opportunities: Analysts also point out that the fall in the market presents buying opportunities in specific sectors that are expected to benefit from the stable interest rate environment, such as banking and financial services.
Overall, the sentiment among analysts is one of cautious optimism. While the market’s reaction to the RBI’s decision has been negative in the short term, many analysts believe that the focus on stability is the right approach for long-term growth.