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Nifty closed at 24,619, down 90 points, while Sensex ended 34 points lower at 80,675.
Nifty IT Index plunged 430 points, with major drags from Wipro, HCLTech, and Infosys.
RBI kept the repo rate unchanged at 5.50%, maintaining a ‘withdrawal of accommodation’ stance.
The Indian stock market today is volatile at press time. Benchmark indices are trading in the red after the Reserve Bank of India (RBI) maintained the repo rate at 5.50 %. The Nifty 50 index traded below the crucial 24,650 level, declining by around 30 points to 24,619.55, while the Sensex slipped marginally by 34.53 points to 80,675.72.
The market sentiment was weighed down by significant pressure in the IT sector, with the Nifty IT index plunging 430.75 points or 1.23 % to 34,603.75. This marked one of the steepest declines among sectoral indices, reflecting concerns over global technology spending and tariff uncertainties.
The central bank's decision to keep the repo rate unchanged at 5.50 % was widely anticipated by market participants. RBI Governor Sanjay Malhotra, in his post-MPC meeting address, maintained the status quo on monetary policy, citing inflation and growth concerns. The market's muted response to the decision suggests that investors had already factored in the rate pause.
An internal RBI working group also recommended continuing with the overnight weighted average call rate (WACR) as the operating target of monetary policy. Hence, it is effective in transmitting signals to other money market instruments across maturities.
The broader markets faced more significant pressure, with the BSE SmallCap index declining 549.28 points or 1.04% to 52,282.13. The midcap segment also witnessed selling pressure, falling nearly 400 points during the session.
However, the banking sector showed resilience, with the Nifty Bank index gaining 83.15 points or 0.15 % to 55,443.40, providing some support to the overall market sentiment.
Among the top gainers on Nifty 50, Asian Paints led the pack with a 2.49 % rise to Rs 2,497.50, followed by Trent, which gained 1.55% to Rs 5,400. Titan Company and Bharat Electronics also posted gains of 1.07% and 1.02% respectively.
According to Moneycontrol data, IT major Wipro emerged as the biggest loser, declining 1.72 % to Rs 241.67. Dr. Reddy's Labs and Jio Financial Services also faced selling pressure, falling 1.55 % each. Bajaj Finance and IndusInd Bank rounded out the top losers, declining 1.51% and 1.42% respectively.
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The ongoing earnings season continued to drive individual stock movements. Divi's Laboratories was among the notable decliners, falling over 3 % after announcing its quarterly results. The pharmaceutical major's shares slumped 3.15 %, reflecting investor disappointment with the company's performance.
Bajaj Auto also came under pressure following its results announcement, with shares trading lower during the session. Several other major companies, including Hero MotoCorp, Trent, Bajaj Holdings, Bharat Forge, and Pidilite Industries, were scheduled to announce their quarterly earnings during the day.
Gujarat Gas reported mixed quarterly results with consolidated profit remaining flat at Rs 327.6 crore compared to Rs 330.7 crore year-on-year, while revenue declined 13 % to Rs 3,870.9 crore from Rs 4,450.3 crore.
HG Infra Engineering received a Letter of Award for creating an integrated material handling facility at the Naval Dockyard in Mumbai. However, the stock declined 2.06 % to Rs 1,006.05 during trading.
Steel Exchange India announced a strategic collaboration with logistics companies to develop a General Cargo Terminal and Multi-Modal Logistics Park in Visakhapatnam. Thus, strengthening multimodal logistics capabilities.
Foreign institutional investors (FIIs) continued their selling trend, with net outflows of Rs 22.48 crore on August 5, though significantly lower than the previous day's Rs 2,566.51 crore. Domestic institutional investors (DIIs) provided support with net inflows of Rs 840.39 crore.
Market experts suggest that while equity investors aren't hitting the panic button, there's a notable pivot toward domestic plays amid global trade uncertainties. The tilt toward domestic resilience, capital goods, and long-cycle sectors is likely to deepen as new risks emerge on the global trade front.
As tariff-related uncertainties persist, several money managers believe it may be prudent to shift focus from export-heavy themes to domestic demand plays, given the near-term volatility in the stock market. The market's ability to defend key support levels despite these challenges demonstrates underlying resilience, though caution remains warranted in the current environment.
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1. Why did the Indian stock market fall today?
The Indian stock market fell due to pressure from IT and pharma stocks and a cautious sentiment following the RBI’s decision to keep the repo rate unchanged at 5.50%. The Nifty IT index dropped sharply by over 430 points, dragging broader indices down. Additionally, profit-booking in select stocks and subdued global cues contributed to the decline.
2. What are the closing values of Nifty and Sensex today?
On August 5, 2025, the Nifty 50 closed at 24,619, down by 90 points, while the Sensex closed at 80,675, slipping by 34 points. Both indices were affected primarily by losses in the IT and pharma sectors.
3. Which sectors were the top losers in today’s market?
The IT sector was the biggest loser, with the Nifty IT index crashing by over 430 points. Major draggers included Wipro, HCLTech, Infosys, and LTIMindtree. Pharma and FMCG stocks also saw profit-booking, weighing on overall sentiment.
4. What was the RBI’s monetary policy update today?
The Reserve Bank of India kept the repo rate unchanged at 5.50% during its August 2025 policy meeting. It maintained its stance of ‘withdrawal of accommodation’ and emphasized inflation control as a key priority. This was the eighth consecutive policy hold.
5. What stocks were top gainers and losers today?
Top gainers included Asian Paints (up 2.49%), Titan (up 1.07%), and Cipla. Top losers were Divi’s Labs (down 3.15%), Dr. Reddy’s (down 1.55%), and Bajaj Auto, which declined despite reporting a 6.7% YoY profit rise in Q1.
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