Mumbai, Aug 9: The Indian benchmark index Sensex fell 0.9 per cent this week, while the Nifty slipped almost the same, falling below the critical 24,400 level and closing at 24,363.

The Indian equity market remained in consolidation for another week, a trend that has persisted since early July. Market sentiment was weighed down by concerns over elevated global interest rates, weak global market cues, and consistent profit-booking in heavyweight sectors, analysts said on Saturday.

In its meeting, the Reserve Bank of India’s Monetary Policy Committee (MPC) lowered the FY26 inflation forecast to 3.1 per cent from 3.7 per cent, citing favourable monsoon conditions and improved supply dynamics.

It kept the repo rate unchanged at 5.5 per cent maintaining a neutral stance amid global trade uncertainties. It also maintained the GDP growth projection for FY 26 at 6.5 per cent.

During the week, the US, however, imposed a 25 per cent tariff on Indian exports, though the RBI governor mentioned that the tariffs would have minimal effect on India’s economy.

“Concerns over steep US tariff rates and underwhelming quarterly earnings have dampened market confidence. Persistent selling by FIIs, particularly in pharma stocks with significant US exposure, underscores this cautious outlook. The continued depreciation of the Indian rupee has also added to investor anxiety,” said Vinod Nair, Head of Research, Geojit Investments Limited.

Despite these headwinds, downside risks were partially cushioned by RBI’s reaffirmation of macroeconomic stability, its optimistic stance on domestic growth, and early signs of easing inflation, Nair said, adding that market volatility is expected to persist and investors are keeping an eye on upcoming inflation data from India and the US.

"The Nifty made six consecutive red candles on the weekly chart, an unusual pattern that implies continuous selling pressure. Any reversal around the index's 24,200–24,000 support zone could be a buying opportunity," Mandar Bhojane from Choice Equity Broking said.

A decisive closing above 24,590 may lead to 25,000 and 25,250 in the short term, he added.

(IANS)

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