Indian stock markets traded lower after the Reserve Bank of India maintained the status quo on interest rates and reiterated its cautious, data-dependent stance. While the decision itself was widely expected, the RBI’s tone signalled patience rather than any shift toward easing, disappointing investors who were hoping for guidance on potential rate cuts later in the year.

The Sensex slipped over 350 points, while the Nifty50 fell below the 25,500 mark in early trade. IT stocks led the decline, with Tata Consultancy Services falling over 2%, followed by losses in Tech Mahindra, Infosys, and State Bank of India. Broader markets also weakened, as midcap and smallcap indices slipped nearly 1%.

Market experts said the sell-off was driven more by sentiment than fundamentals. While inflation remains within the RBI’s comfort range and GDP growth is projected at a healthy 7.4%, global uncertainties and volatile commodity prices continue to cloud the outlook. The RBI’s emphasis on vigilance and stability cooled risk appetite.

Global risk-off sentiment further weighed on markets, with weakness across cryptocurrencies, precious metals, and US tech stocks. Most sectoral indices traded in the red, although FMCG, private banks, and oil and gas stocks managed modest gains.

Analysts believe that near-term market direction will now depend on liquidity conditions, global cues, and upcoming inflation data. While the RBI’s stance supports long-term stability, it offered little immediate comfort to equity markets seeking policy-driven momentum.