On Wednesday, both the major indices of the stock market, Sensex and Nifty, saw gains throughout the day, but in the last hour the stock market changed its course. On Wednesday, both the indexes closed with a decline. Even after that, investors did not suffer loss but remained profitable. The special thing is that the Central Bank made its policy stance 'neutral', which opened the way for reduction in interest rates in the coming months. Experts say that interest rates can be cut in the policy meet of December or next February. Let us also tell you in which language the stock market figures are talking.
There was a rise in the stock market throughout the day on Wednesday, but in the last hour there was a decline in the market and it closed in the red. Bombay Stock Exchange's main index Sensex closed at 81,467 with a decline of 167 points or 0.21 per cent. NSE Nifty fell 31 points or 0.12 per cent to close at 24,982. The special thing is that the Sensex had reached the day's high during the trading sessions with 82,319.21 points. But later the Sensex fell by more than 850 points from the high. Apart from this, Nifty has also closed down by more than 250 points from its day's high of 25,234.05 points.
Among Sensex constituents, ITC, Nestle India, HUL, Reliance Industries and L&T were the top losers with losses of 1-3 per cent. On the contrary, Tata Motors, Tech Mahindra, SBI, Maruti Suzuki and Bajaj Finserv closed with gains. The Financial Services Index closed 0.4 per cent higher, while auto and real estate shares rose 0.8 per cent and 2.15 per cent, respectively. However, Nifty Bank closed flat. The broader, more domestically focused Nifty Smallcap 100 and Midcap 100 indices rose 1.3 per cent and 1 per cent, respectively.
Meanwhile, the pharma index closed 2 per cent higher led by an 8 per cent rise in Divis Laboratories after Citi initiated coverage of the drug maker's stock with a 'buy' rating. The IT index rose 0.55%, marking the fourth consecutive session of gains, as labor market data eased recession concerns in the US, a major revenue source for the sector.
Despite the decline in the stock market, on the strength of mid and small caps, the stock market has made huge earnings for the investors. The market cap of all listed companies on BSE increased by Rs 2.73 lakh crore to Rs 462.24 lakh crore. Whereas during the trading session investors had made a profit of Rs 5.66 lakh crore. About 2,706 shares advanced, 1,247 shares declined and there was no change in 96 shares on BSE. The Reserve Bank of India (RBI) changed its policy stance to neutral on Wednesday, opening the window for interest rate cuts in the coming days. However, for the 10th consecutive time, RBI did not make any change in the repo rate and left the rate at 6.5 percent.
