Indian Stocks Mixed: RBI Holds Rates, Services PMI Slips

Indian equity benchmarks registered mixed trades during morning deals, influenced by the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decision to maintain its benchmark repo rate at 5.25%.

Traders also reacted to a significant slump in India’s dominant services sector growth, which recorded its weakest pace in over four years in July, according to HSBC’s India Services Purchasing Managers’ Index (PMI).

Key Market & Economic Indicators

• BSE Sensex: Currently at 78644.03, up by 215.08 points or 0.27%.
• Sensex Range: Traded between 78609.84 and 79055.38.
• RBI Repo Rate: Held at 5.25% with a ‘neutral’ policy stance.
• Services PMI: Fell sharply to 53.3 in July from 57.4 in June.

Despite cautious sentiment, Finance Minister Nirmala Sitharaman’s statement provided support, projecting the Indian economy to surpass the $5-trillion mark by FY29. This aligns with International Monetary Fund (IMF) projections, driven by a broad-based growth strategy.

Global Market Overview

Globally, Asian markets largely traded in the green. This positive sentiment was attributed to a slump in crude oil prices and eased global bond yields, alongside hopes for progress on opening the Strait of Hormuz.

Sectoral Performance and Top Movers

On the BSE, 20 stocks advanced against 10 declining stocks, indicating a mixed breadth.

• Top Gaining Sectors: Realty up by 2.28%, Auto up by 1.74%, Consumer Discretionary up by 1.16%, Industrials up by 0.82%, Metal up by 0.56%.
• Lone Losing Sector: Healthcare down by 0.12%.

Individual Sensex components showed notable movements throughout the session.

• Top Sensex Gainers: Mahindra & Mahindra up by 1.91%, Interglobe Aviation up by 1.87%, Trent up by 1.82%, NTPC up by 1.70%, State Bank of India up by 1.53%.
• Top Sensex Losers: Sun Pharma down by 1.09%, Bharat Electronics down by 0.52%, TCS down by 0.52%, Titan Company down by 0.51%, HCL Technologies down by 0.27%.

Hospitality Sector Outlook

Rating agency ICRA projected robust growth for India’s hospitality industry, forecasting 7% to 9% year-on-year revenue growth in the current financial year (FY27). This follows an estimated 11% expansion in FY26, based on an analysis of 15 large premium hotel companies.

• Pan-India Premium Hotel Occupancy: Expected to remain at 72-74% in FY27, consistent with FY26 levels.
• Average Room Rates (ARRs): Projected to increase to Rs 8,600-8,800 in FY27 from Rs 8,200-8,500 in FY26.
• Operating Margins: ICRA’s sample set anticipates 34-36% in FY27, broadly similar to the 37% reported in FY26.

The day’s trading reflected a cautious optimism, balancing domestic policy decisions and economic data with positive global cues and a strong long-term economic outlook.