Nifty 50, Sensex snap five-session gaining streak as RBI maintains repo rate

The Nifty 50 and Sensex erased some gains to end flat on Friday, snapping a five-session gaining streak, as the Reserve Bank of India maintained its interest rate stance but cut the cash reserve ratio by 50 basis points.

However, the headline domestic indexes ended the week in the positive for the third consecutive time, gaining 2% each and recording their biggest weekly gains in six months.

“The 50 bps cut in CRR is expected to infuse ₹1.16 trillion of liquidity into the banking system. However, as a reduction in CRR was already factored in, banking stocks were largely unchanged even after the outcome of the monetary policy committee’s meeting. Liquidity measures like the CRR cut will provide a lifeline for banks to drive lending. Banks, non-banking finance companies, real estate, automobile, consumer durables, and infrastructure sectors stand to gain directly from the RBI’s accommodative measures and liquidity infusion,” Robin Arya, founder of GoalFi, said in a note as reported by Cogencis Informtion.

On Friday, The Sensex closed 57 points lower at 81,709, while the Nifty slipped 31 points to finish at 24,678.

The Nifty Bank index underperformed, dropping 94 points to 53,510, marking a decline of 400 points from its intraday high. Midcap stocks showed resilience, with the Nifty Midcap Index rising 263 points to end at 58,705, outperforming the broader indices.

In sector-specific action, auto stocks witnessed gains as Maruti Suzuki rose 2% following its announcement of a price hike effective January. Bajaj Auto and Tata Motors were among the top gainers in the segment, advancing 2-3%.

Samvardhana Motherson’s stock climbed 2% after the company announced the acquisition of Japan-based Atsumitec for $57 million. Shares of RITES gained over 3% after securing a contract worth ₹148.25 crore, while Ramco Systems rose 2% on its partnership with Korea-based firms for digital transformation initiatives.