By Bharath Rajeswaran and Vivek Kumar M
(Reuters) -Indian shares fell on Wednesday after the Reserve Bank of India kept the key policy rate and the monetary policy stance unchanged as it waited to see the impact of global trade uncertainties.
The Nifty 50 was down 0.25% at 24,591.15 points and the BSE Sensex lost 0.16% to 80,587.2, as of 10:12 a.m. IST.
Both benchmarks traded flat ahead of the policy decision.
All 16 major sectors logged losses. The broader small-caps and mid-caps fell about 1% each.
The RBI held rates steady as expected and maintained its policy stance at “neutral”, following a surprise 50-basis point cut in June.
Global trade challenges continue to linger but prospects for the Indian economy remain “bright”, RBI Governor Sanjay Malhotra said in his statement.
“The RBI rate decision is along expected lines, but the supportive tone could reinforce confidence in India’s macro stability and boost investment momentum,” said Manish Goel, founder and managing director at Equentis Wealth Advisory Services.
U.S. tariff threats are casting a shadow over markets, dampening sentiment despite positive RBI commentary on India’s economic growth, two analysts said.
(Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Janane Venkatraman, Nivedita Bhattacharjee and Sonia Cheema)
