Equity markets closed lower on Wednesday despite the Reserve Bank of India’s first rate cut since May 2020, as investors remained concerned about global trade tensions and continued foreign institutional investor (FII) outflows. The BSE Sensex fell 197.97 points or 0.25 per cent to close at 77,860.19, while the Nifty 50 declined 43.40 points or 0.18 per cent to end at 23,559.95. The BSE market capitalisation data for the week showed a fluctuating trend, starting at ₹42,480,380.82 crore on February 1 with 5,587 listed companies. After dropping to ₹42,031,299.60 crore on February 3, it peaked at ₹42,803,611.66 crore on February 5, before settling at ₹42,580,986.85 crore on February 6. The top 10 companies’ market capitalisation similarly varied, ending at ₹9,470,356.08 crore on February 6. The central bank reduced the repo rate by 25 basis points to 6.25 per cent, while maintaining a neutral stance. The RBI also revised its FY25 GDP growth forecast downward to 6.4 per cent from 6.6 per cent and projected 6.7 per cent growth for FY26. “A rate cut aimed at reviving the slowing economy is a positive indicator. However, yields edged higher as investors were disappointed by the absence of anticipated liquidity measures, leading to profit-booking in the indices,” said Vinod Nair, Head of Research at Geojit Financial Services.