Indian equity markets closed largely in the red on Friday (February 7) despite the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points.

The Nifty declined by 43 points to settle at 23,560, while the Sensex lost 198 points to close at 77,860. The Nifty Bank index fell 223 points to 50,159, while the broader Nifty Midcap index outperformed, gaining 108 points to close at 53,609.

Metal stocks saw a strong uptrend, tracking positive global cues, with Tata Steel and JSW Steel emerging as the top gainers. Select financial stocks, including Federal Bank, REC, and PFC, rebounded from intra-day lows following the RBI’s policy statement.

Also Read: Ambit’s Dhiraj Agarwal on why stock pickers face a tough market this year

Federal Bank, in particular, gained over 2% after the RBI Governor’s comments on the Liquidity Coverage Ratio (LCR) provided support to banking stocks. Among corporate earnings-driven moves, Bharti Airtel surged 4% and M&M gained 2% following strong Q3 results.

Trent also saw renewed buying at lower levels post-results, ending 3% higher. On the downside, ITC and SBI dropped 2% each, ranking among the top Nifty losers after their Q3 earnings.

NCC shares plummeted 13% after the company revised its FY25 revenue and margin guidance lower. Cummins India declined 3% despite maintaining its FY25 revenue outlook, as export concerns weighed on sentiment.

Also Read: Kalyan Jewellers shares snap a two-day gaining streak; check consensus upside potential

Alkem Laboratories slipped 2% due to weaker-than-expected U.S. business revenue, although its overall margins exceeded estimates. Balrampur Chini and PI Industries both fell 3% on negative reactions to their Q3 results. The market breadth remained weak, with the advance-decline ratio standing at 1:2.