RBI Holds Rates Steady, Markets React with Volatility

Indian equity indices Sensex and Nifty declined nearly 1% after the Reserve Bank of India held the policy rate steady for the ninth consecutive time amid stubborn food inflation. Sensex fell by 581.79 points while Nifty was down by 180.50 points. Continuous foreign fund outflows and weak global market trends contributed to the decline.

Indian equity benchmark indices Sensex and Nifty closed nearly 1% down on Thursday following the Reserve Bank of India's decision to keep the policy rate unchanged for the ninth time in a row, citing persistent high food inflation.

The 30-share BSE Sensex dropped 581.79 points to close at 78,886.22 in volatile trading, while the NSE Nifty fell 180.50 points to 24,117. Analysts attributed the declines to continuous foreign fund outflows and weak trends in the US and European markets.

RBI Governor Shaktikanta Das emphasized the bank's vigilant stance on inflation control. Meanwhile, sectors such as metal, IT, and utilities witnessed declines, with healthcare emerging as the only gainer.