Even as the Reserve Bank of India hiked repo rate by 50 basis points, the policy failed to dent the market much as rate-sensitive stocks remained almost unfazed. The reaction from the market was largely due to the RBI announcements were on expected lines and the market had already priced-in rate hike possibilities. It was also evident from the fact that PSU Bank was one of the leading gainers among sectoral indices. Nifty Realty was top gainer with over two per cent gain.  

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Nevertheless, the market extended the decline for the fourth session in a row as benchmarks Nifty 50 and Sensex ended lower by 0.37% and 0.39% respectively. The weakness was largely due to profit booking in FMCG, energy and consumer durable stocks.  

Meanwhile, the broader Nifty50 slipped below 16,400 to 16,356 and the Sensex ended around 54,900. On the blue-chip Nifty50 index, as many as 22 stocks advanced and 28 declined, while 17 ended in the red and 13 closed on positive note on 30-share Sensex. 

"Markets witnessed a roller coaster ride and ended the session with a cut of nearly half a percent. The start was positive amid supportive global cues, however, choppiness after the MPC meeting outcome kept the traders on their toes till the end. Finally, the Nifty ended at 16,356 levels. On the sectoral front, a mixed trend was seen while the broader ended lower in the range of 0.2-0.5%." said Ajit Mishra, VP - Research, Religare Broking Ltd 

During the last four negative closings, the benchmarks have corrected by more than one and half per cent as on June 8.  

Here is what market experts make of today's session 

Vinod Nair, Head of Research at Geojit Financial Services. 
RBI turned realistic by withdrawing their accommodative stance, realising the need for front-loaded action and increased inflation forecast by 100bps to 6.7%. On the bright side, there were some positive points like no increase in CRR, economic growth was maintained healthy at 7.2% and no additional measures were announced to reduce the liquidity of the banking system. However, the focus shifted to the global market, which is anticipating a hawkish Fed policy, stated next week 

 
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities. 
The RBI policy turned out to be a non-event for the index as it ended on a flat note. The index is stuck in a broad range between 34,500-36,000 levels where a significant amount of put and call writing has been witnessed. The undertone remains bearish as long as it stays below the immediate hurdle of 35,500" 

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas 

The Nifty witnessed swings in both directions on June 8, and ultimately closed negative. The hourly chart shows that the upside for the day was capped near the key hourly moving averages. On the downside, the dips got arrested near the hourly lower Bollinger Band.  

In terms of the levels, the index has broken the first line of defense at 16400, however, is in process of forming an accumulation in the range of 16400-16300. Development of structure within this range will decide further course of action for the short-term. On the higher side, 16500-16520 is posing as a near term barrier. 

Ajit Mishra, VP - Research, Religare Broking Ltd  

As the RBI policy is behind us, markets will take cues from global markets and upcoming macroeconomic data. We reiterate our cautious view citing a lackluster move in the index and suggest maintaining positions on both sides. 

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services 

For the market, more important than today's policy announcement would be the US inflation data to be released on Friday. If the US inflation print comes higher than expected, markets will start discounting a more aggressive Fed and this can cause a sharp market correction,” Vijayakumar said.  

On the other hand, if the data indicate inflation peaking and potentially drifting down, the US market will bounce back providing a lift up for global markets, he added, adding that the one predictable trend in India is that FPIs will continue to sell on every rally. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)