Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, opened flat in trade ahead of the RBI policy. While Nifty50 was above 26,000, BSE Sensex was around 85,250. At 9:18 AM, Nifty50 was trading at 26,037.90, up 4 points or 0.016%. BSE Sensex was at 85,243.19, down 22 points or 0.026%.Nifty managed a slight uptick on Thursday, breaking a four-day declining streak, though upside remained limited due to continued foreign investor outflows and the rupee touching historic lows. Experts anticipate a period of sideways movement.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Today the market focus will be on the monetary policy. More important than the rate action, which is very tricky in the context of low inflation, high growth and depreciating rupee, the market will be keen to know what the governor says about the emerging macro trends. RBI’s action on the liquidity front will be keenly watched. If there is a rate cut, that will be the last cut in this rate cutting cycle. A rate cut in the present context will be negative for banks since it will impact their NIMs and ability to mobilise deposits. On the contrary, a rate cut will be positive for rate sensitives like autos and real estate. If there is no rate cut, banking stocks will rally.”“Rupee’s sharp recovery yesterday to 89.97 from the low of 90.42 is signalling some sort of stability in the currency market. The RBI governor’s views on the rupee today will significantly influence the near-term direction of the currency.”US stocks finished largely flat on Thursday as investors assessed labour market reports and additional economic indicators, whilst market sentiment remained buoyed by expectations of a Federal Reserve rate reduction next week.Regional Asian shares declined in early deals following an uninspiring US session that impacted technology shares and bonds, as attention shifted to upcoming US inflation figures on Friday.WTI oil prices approached weekly gains of nearly 2% during early Friday trading. The rise was supported by anticipated Federal Reserve interest rate reductions, heightening US-Venezuela tensions and halted peace negotiations in Moscow.Gold prices maintained stability on Friday, with increasing US Treasury yields counteracting benefits from a weakening dollar. Markets awaited US inflation data later in the day to understand the Federal Reserve’s policy direction before next week’s meeting.Foreign portfolio investors sold shares worth Rs 1,944 crore net on Thursday. Meanwhile, DIIs were net purchasers at Rs 3,661 crore.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
About the Author
