Investor sentiment reacted to the Reserve Bank of India’s decision to hold the repo rate steady at 5.50%
Gaurav Garg,
Lemonn Markets Desk
Mumbai, August 6, 2025: “Indian markets remained volatile on August 6, with the Nifty trading below 24,600 and the Sensex hovering under 80,600, as investor sentiment reacted to the Reserve Bank of India’s decision to hold the repo rate steady at 5.50%. The RBI’s cautious stance amid global uncertainties, including recent tariff threats from the U.S., added to the market's choppiness. Broader markets witnessed sharper declines, with the Nifty Midcap index slipping nearly 400 points and the Smallcap index losing close to 1%.
Earnings also influenced the day’s action. Shares of Divi’s Laboratories dropped 3.15% post results, while Bajaj Auto faced selling pressure. Despite external headwinds, the Nifty managed to defend key support levels, reflecting some underlying resilience”
Shrikant Chouhan, Head Equity Research, Kotak Securities, adds:
Today, the benchmark indices continued with weak momentum. The Nifty ends 75 points lower, while the Sensex was down by 166 points. Among sectors, most of the leading sectoral indices registered intraday profit booking at higher levels, but the Pharma Index lost the most, shedding 2 percent. Technically, the market is still holding a lower top and, on daily charts, has created a small bearish candle, which is largely negative.
We believe that the short-term market outlook is weak but oversold. On the downside, 24,500/80300 continues to be a promising support zone, while 24,700/81000 would act as a crucial resistance area for the bulls. Above 24,700/81000, the pullback is likely to continue up to 24,850–24,900/81500-81600. Conversely, a decline below 24,500/80300 could push the market down to 24,350–24,300/80000-79700.
