The BSE Sensex opened strong, hitting an intra-day high of 78,357, before tumbling nearly 900 points to a low of 77,476. It eventually closed at 77,860, losing 198 points from the previous session. This marked the third consecutive day of decline, but the Sensex still managed to end the week 354 points higher.
The NSE Nifty50 also followed a similar pattern, moving within a range of 23,694 – 23,443, before settling at 23,560, a decline of 43 points.
The RBI’s 25 basis points (bps) rate cut to 6.25% was in line with expectations. However, market sentiment remained cautious as the central bank kept its stance unchanged, prioritizing inflation control while supporting growth.
The broader market reaction to the RBI’s decision was largely negative, with the market breadth showing more stocks declining than advancing.
Impact on the stock market
Sectoral performance:
- FMCG and PSU banks struggled, with both indices dropping by 1.5% each.
- Oil & Gas index lost nearly 1%.
- Metal stocks surged over 2%, making them the best-performing sector of the day.
- MidCap indices saw marginal gains, while SmallCap indices ended slightly lower.
- Volatility Index (India VIX) dropped by 4%, suggesting some stability despite the market swings.
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| Sector/Index | Performance |
| IT & BPM sector | -0.23% |
| Healthcare sector | 0.32% |
| Oil & Gas sector | -0.90% |
| Real estate sector | 0.10% |
| PSU Bank in India | -1.38% |
Top gainers today
| Company | Price | Change % |
| Tata Steel Share Price | 138.31 | 4.35 |
| Bharti Airtel Share Price | 1,676.75 | 3.52 |
| JSW Steel Share Price | 980.75 | 3.41 |
| Trent Share Price | 5,454.40 | 3.36 |
| Hindalco Share Price | 607.40 | 2.01 |
Top losers today
| Company | Price | Change % |
| ONGC Share Price | 248.90 | -2.83 |
| ITC Share Price | 430.85 | -2.32 |
| SBI Share Price | 737.20 | -2.00 |
| Britannia Share Price | 4,870.50 | -1.73 |
| Adani Ports Share Price | 1,146.10 | -1.54 |
Market aftermath: Impact on stocks
Mazagon Dock gains 3% after strong Q3 earnings
Shares of Mazagon Dock Shipbuilders Ltd. jumped 3.47%, reaching an intra-day high of ₹2,274.85 per share, after the company posted a 29% rise in net profit at ₹807 crore for Q3 FY25.
- Revenue soared 33% to ₹3,143 crore, compared to ₹2,362.5 crore in the same quarter last year.
- EBITDA grew by 51.4% to ₹817 crore, with margins improving from 23% to 26%.
The stock remained in positive territory throughout the session, closing 2.34% higher at ₹2,249.90.
Also read: Mazagon Dock Shipbuilders Outlook for FY25
Banking stocks tumble as RBI’s policy disappoints
Despite the RBI’s rate cut, banking stocks saw significant selling pressure due to the lack of additional liquidity measures. Investors had anticipated further easing, leading to a sell-off when the central bank refrained from announcing new liquidity-boosting policies.
- Bank Nifty fell by 0.5% during midday trade.
- State Bank of India (SBI), ICICI Bank, and Bank of Baroda were among the biggest losers, dropping up to 2% each.
Market participants were expecting the RBI to introduce Open Market Operations (OMO) purchases or other liquidity measures, which did not materialize. Analysts now believe system liquidity could worsen by ₹2.5 lakh crore by March 2025 without additional interventions.
Also read: How Indian Monetary Policy Influences the Stock Market
H.G. Infra Engineering edges higher on securing a major project
Infrastructure player H.G. Infra Engineering saw a 1.06% increase in its stock price, reaching ₹1,286, after its joint venture with D.E.C. Infrastructure and Projects (India) won a ₹2,195.68 crore project for redeveloping New Delhi Railway Station.
- The company holds 49% stake in the JV, with D.E.C. owning 51%.
- The estimated project cost by RLDA was ₹2,469 crore, but the JV secured it at a lower bid.
Despite an annual net profit growth of 12.9%, H.G. Infra’s Q3 revenue declined by 7.3% YoY to ₹1,264.84 crore, keeping investor sentiment mixed.
Crude oil update: Prices decline for third straight week
Crude oil futures are headed for their third consecutive weekly decline as US President Donald Trump reaffirmed his commitment to boosting US oil production.
- April Brent crude oil was up 0.34% at $74.54 per barrel, while March WTI crude oil rose 0.27% to $70.80 per barrel.
- However, the Multi Commodity Exchange (MCX) crude oil contracts saw marginal declines, with February contracts dropping to ₹6,205 from ₹6,210.
The price drop comes amid a sharp increase in US crude oil inventories, with the US Energy Information Administration (EIA) reporting an 8.7 million barrel build-up in stocks, significantly higher than market expectations of 2 million barrels.
With Trump’s renewed focus on energy independence, market participants expect further volatility in oil prices.
Conclusion: A day of mixed signals
The Indian stock market experienced high volatility on Friday, reacting to the RBI’s rate cut and its decision to keep liquidity measures unchanged. While banking stocks fell, the metal sector outperformed, and individual gainers like Mazagon Dock and H.G. Infra provided some relief.
With oil prices remaining under pressure and liquidity concerns growing in the banking sector, markets will now shift their focus to upcoming corporate earnings and RBI’s next moves. For investors, the wait-and-watch mode continues, as the central bank navigates a delicate balance between controlling inflation and supporting economic growth.
For more stock market insights, check out the StockGro blog.
