Indian stock markets faced further declines in morning trading, with the Reserve Bank of India (RBI) deciding to keep the repo rate unchanged at 6.5% for the ninth consecutive time. The RBI's Monetary Policy Committee (MPC) maintained a cautious outlook due to ongoing high food inflation. Additionally, the central bank retained its GDP growth forecast at 7.2% for the fiscal year 2024-25 (FY25). The dip in domestic equities was also driven by continuous foreign fund outflows and a weak trend in the U.S markets. Exchange data indicated that foreign institutional investors (FIIs) sold shares worth Rs 3,314.76 crore on Wednesday. Traders also noted 16th Finance Commission chairman Arvind Panagariya’s comments on the need for further economic liberalization, bank privatization, and market reforms to boost growth beyond 6.5-7%.

Globally, Asian markets were trading lower following negative cues from Wall Street, where stocks struggled amid concerns over the U.S. economic outlook despite reassurances from Federal Reserve officials. Rising geopolitical tensions added to the market pressures. Back in India, mining stocks remained in focus as Mines Secretary V L Kantha Rao mentioned that the ministry is working on launching the Critical Mineral Mission this year, as proposed in the Union Budget 2024-25.

The BSE Sensex was down by 426.36 points, or 0.54%, trading at 79,041.65, with only 6 stocks advancing against 24 declining. The broader indices showed mixed performance; the BSE Mid cap index dropped 0.03%, while the Small cap index increased by 0.43%. Healthcare and Telecom sectors were among the few gainers, while Metal, Oil & Gas, IT, Energy, and PSU sectors saw significant losses.

Top gainers on the Sensex included Tata Motors (up 1.99%), Sun Pharma (up 0.38%), and Titan Company (up 0.27%). Conversely, Infosys (down 2.06%), Power Grid Corporation (down 1.85%), and Larsen & Toubro (down 1.60%) were among the top losers.

In parliamentary news, the Lok Sabha passed the Finance Bill 2024 with several amendments. Finance Minister Nirmala Sitharaman emphasized the government's goal of simplifying tax laws and fostering growth and employment. She clarified the provisions regarding capital gains tax in real estate, allowing exemptions for reinvestments in properties and bonds, and introduced a choice between a 12.5% tax without indexation and a 20% tax with indexation for properties acquired before July 23, 2024.

The CNX Nifty was down by 126.30 points, or 0.52%, trading at 24,171.20, with 11 stocks advancing and 39 declining. Leading gainers included Tata Motors, Cipla, and Dr. Reddy's Lab, while Infosys, Power Grid Corp, and BPCL were among the top losers.

In Asian markets, indices such as the Jakarta Composite, KOSPI, and Nikkei 225 traded lower, while Hang Seng, Shanghai Composite, and Straits Times saw gains.