The Indian stock market closed flat on Friday after the announcement of the RBI’s Monetary Policy Committee (MPC) decisions on repo and CRR rates, as selling was seen in IT, financial services, and pharma sectors and buying was seen in auto and metal stocks.
At the close of trading, the Sensex ended at 81,709.12, marking a marginal drop of 56.74 points (0.07%), while the Nifty closed at 24,677.80, down by 30.60 points (0.12%).
The RBI’s decision to keep the repo rate steady at 6.5% while introducing a 50-basis-point cut in the cash reserve ratio (CRR) to 4% was a key highlight of the day. The CRR cut has infused ₹1.16 lakh crore into the banking system, bolstering liquidity.
Among sectoral indices, the Nifty Bank fell to 53,509.50, a decline of 94.05 points (0.18%). In contrast, the Nifty Midcap 100 and Nifty Smallcap 100 indices showed resilience, rising 0.45% and 0.82%, respectively.
Bharti Airtel, Asian Paints, IndusInd Bank, Bajaj Finserv, Reliance, Infosys, and UltraTech Cement were the top losers. Meanwhile, Tata Motors, Axis Bank, Maruti, L&T, and ITC emerged as the biggest gainers.
Market recovery was evident in broader indices, with the Nifty 50 rising 3.2% over the week, while the Midcap and Smallcap indices posted gains of 3.5% and 3.3%, respectively.
Foreign Institutional Investors (FIIs) also returned to the market with net inflows of approximately ₹14,000 crore in early December, offering relief after November’s heavy selling pressure.