Share Market Highlights 8 August 2024: Sensex, Nifty tumble nearly 1% post RBI monetary policy decision

Sensex, Nifty updates on 8 August 2024: Equity benchmark indices Sensex and Nifty closed nearly 1 per cent down on Thursday after the Reserve Bank of India decided to keep the policy rate unchanged for the ninth time in a row, saying food inflation remains stubborn. The 30-share BSE Sensex declined by 581.79 points or 0.73 per cent to settle at 78,886.22 in a volatile trade. During the day, it tumbled 669.07 points or 0.84 per cent to 78,798.94. After a day’s breather, the NSE Nifty retreated to close lower by 180.50 points or 0.74 per cent to 24,117. During the day, it tanked 217.8 points or 0.89 per cent to 24,079.70. The Reserve Bank of India on Thursday expectedly kept the benchmark interest rate and stance unchanged for the ninth straight policy meeting, saying it cannot afford to look through persisting high food inflation and has to remain vigilant to prevent spillover. Retaining its unambiguous focus on inflation, the Monetary Policy Committee (MPC), which consists of three RBI and three external members, kept the benchmark repurchase or repo rate unchanged at 6.50 per cent. The panel, whose four-year term ends in October, also decided to retain a policy stance at “withdrawal of accommodation” to aid MPC’s focus on bringing inflation towards its 4 per cent target. Inflation climbed to 5.08 per cent in June, primarily driven by the food component. RBI Governor Shaktikanta Das said food inflation remains “stubbornly” high. V K Vijayakumar of Geojit Financial Services noted that the RBI’s decision to keep policy rates unchanged was anticipated. He emphasized the Governor’s focus on inflation control for sustained growth. Vijayakumar expects the market’s attention to shift towards the US jobs data and recession concerns, rather than the RBI’s policy, as these factors will likely have a more significant impact on market movements.