MUMBAI: Indian shares fell on Wednesday, dragged by rate-sensitive stocks after the central bank held key rates and maintained a ‘neutral’ stance, disappointing expectations of a dovish tilt, while concerns over US tariffs weighed on IT and pharma.
The Nifty 50 fell 0.31% to 24,574.20, while the BSE Sensex lost 0.21% to 80,543.99. While reiterating that the domestic economic outlook remained “bright” despite global trade challenges, the RBI held rates steady, as expected, and retained its policy stance at “neutral” following a surprise 50-basis-point cut in June.
“Even with inflation at lower levels, RBI chose to remain watchful rather than supportive. That silence on future easing took the steam out of rate expectations,” said Nikunj Saraf, chief executive at Choice Wealth.