India’s stock benchmarks wiped out intraday gains and fell from record highs in late-morning deals, dragged by weakness in Reliance Industries after the Supreme Court ruled in Amazon’s favor over Future Retail’s sale to Reliance Industries case. The Sensex dropped more than 348 points from the record and Nifty dropped below 16,300 after reaching a record high of 16,336.75. Meanwhile, the Reserve Bank of India’s monetary policy committee kept interest rates stable at record lows on Friday, as expected.
At 10:51 a.m., the Sensex fell 205 points to 54,288 and the Nifty 50 index fell 43 points to 16,251.
The Reserve Bank kept the repo rate unchanged at 4 percent and decided to take an “accommodative” stance as the economy has yet to recover from the impact of the second Covid wave. The governor of the RBI made the announcement at the end of the Monetary Policy Committee’s (MPC’s) bimonthly review meeting, which began Wednesday. The reverse repo rate has also been left untouched at 3.35 percent.
Meanwhile, Reliance Industries was the biggest impediment to the benchmarks after the Supreme Court ruled the grant of an emergency arbitrator enforceable in the Future Retail case. The emergency arbitrator in Singapore had ordered the postponement of the sale of Future Retail to Reliance.
Six of the eleven sector meters were lower, led by the 0.3 percent decline in the Nifty Pharma index. Nifty Metal, FMCG, Bank and Financial Services indices also traded weakly.
On the other hand, the IT, media and private banking indices traded positively.
Mid and small cap stocks witnessed buying interest as the Nifty Midcap 100 Index rose 0.4 percent and the Nifty Smallcap 100 Index rose 0.2 percent.
Grasim, Titan, Tata Steel, Larsen & Toubro, ICICI Bank, State Bank of India, HDFC, UltraTech Cement, JSW Steel, Dr Reddy’s Labs, HCL Technologies, Britannia Industries, Axis Bank and HDFC Bank were among the biggest losers in the Nifty .
On the other hand, IndusInd Bank, Maruti Suzuki, Tata Consumer Products, Indian Oil, Bharat Petroleum, Tech Mahindra and Bharti Airtel were among the winners.