Closing Bell: Nifty 50 Ends Flat After RBI Holds Rates; Metal Stocks Rally, Sensex Up 152 Points Higher

The Nifty 50 and Sensex ended in positive territory on Wednesday after the Reserve Bank of India maintained the policy repo rate, choosing to wait for more clarity on the impact of elevated crude oil prices and a weaker-than-expected monsoon on inflation. Investors remained cautious through most of the session, although late buying helped benchmark indices erase a large part of their Intraday losses.

The Nifty 50 opened higher at 24,669.20 and touched an intraday high of 24,677.60 before selling pressure emerged. The index gradually slipped through the day and hit an intraday low of 24,497.95. Buying interest returned during the final hour of trade, while the newly introduced Closing Auction Session (CAS) further lifted the official closing price. Under the new mechanism, F&O-eligible stocks enter an auction after 3:15 pm, with the closing price determined through an equilibrium price based on pooled buy and sell orders instead of the earlier volume-weighted average price method.

The Nifty 50 ended the session at 24,624.65, up 9.75 points, or 0.04 per cent. The Sensex gained 152.05 points, or 0.19 per cent, to close at 78,581. The Bank Nifty declined 0.29 per cent, extending its recent weakness, while India VIX remained largely unchanged near the 12 mark, indicating subdued market volatility.

Brent crude oil rose to around USD 84 per barrel, snapping a two-day decline after Yemen's Houthis claimed an attack on a Saudi vessel in the Red Sea. However, oil prices remained well below recent highs as investors grew optimistic that a deal to reopen the Strait of Hormuz could help ease supply concerns.

Broader markets continued their strong performance, with the Nifty Midcap 100 rising 0.18 per cent to a fresh record high. The Nifty Smallcap 100 also touched a new lifetime high, advancing 0.76 per cent, reflecting sustained buying interest in the broader market.

Sectoral performance remained mixed, with five of the 11 major sectoral indices ending higher. The Nifty Metal index emerged as the top performer, gaining 1.72 per cent and extending its winning streak to six consecutive sessions, supported by sharp gains of over 6 per cent in Hindustan Copper and Hindustan Zinc. On the other hand, the Nifty Media index fell 1.58 per cent, dragged lower by a decline of more than 5 per cent in Zee Entertainment Enterprises.

Among individual stocks, Ola Electric Mobility jumped 7.44 per cent after signing a memorandum of understanding with Axis Energy to enter the utility-scale battery energy storage business. New India Assurance climbed 6.98 per cent after the Supreme Court extended mandatory third-party motor insurance coverage for new vehicles, strengthening the outlook for insurers with large motor insurance portfolios. Go Digit General Insurance gained 6.49 per cent following the Supreme Court's ruling and the Competition Commission of India's approval for the proposed amalgamation of Go Digit Infoworks with the company.

Larsen & Toubro, State Bank of India and Shriram Finance contributed the most to the Nifty 50's gains, adding 17.08 points, 11.08 points and 10.78 points, respectively. Meanwhile, HDFC Bank, Reliance Industries and Tata Consultancy Services were the biggest drags on the index, shaving off 23.38 points, 16.06 points and 10.46 points, respectively.

Market breadth remained positive on the NSE. Of the 3,472 stocks traded, 1,974 advanced, 1,394 declined and 104 remained unchanged. During the session, 152 stocks touched their 52-week highs, while 33 hit fresh 52-week lows. Additionally, 127 stocks were locked in their Upper Circuits, whereas 97 stocks hit their Lower Circuits.

Disclaimer: The article is for informational purposes only and not investment advice.