Despite renewed trade tensions, stemming from the US—the domestic market remained resilient on Wednesday. The 30-share BSE Sensex fell 166.26 points to settle at 80,543.99.  During the day, it declined 261.43 points to hit a low of 80,448.82. The 50-share NSE Nifty dipped 75.35 points to close at 24,574.20. In the intraday session, the index decreased 110.35 points to hit a low of 24,539.20.

“The pharma sector underperformed, emerging as a notable casualty of the tariff warnings. As expected, the RBI maintained a neutral stance and kept policy rates unchanged, acknowledging global headwinds while emphasizing India’s domestic resilience, fiscal prudence, and strong rural demand. The inflation outlook has turned more favourable, supported by a good monsoon and healthy kharif sowing. In anticipation of improvement in consumption, private investment, and continued government-led capex, the domestic economy appears well-positioned for a better second half, reinforcing investor confidence despite external uncertainties,” said Vinod Nair, head of research, Geojit Investments.

President Trump’s rhetoric and actions will continue to weigh on markets in the near-term. India’s response to the rhetoric and actions, so far, has been subdued and, of late, strong and measured. India is unlikely to concede to the unjustifiable and unreasonable demands of the US administration. This means there will be short-term pains for the economy in terms of lower exports and a marginal hit to our GDP growth in FY26 with the GDP growth declining to around 6.2% from 6.5% estimated earlier.