Mumbai (Maharashtra): Indian stock markets sustained their positive trend as reduced selling pressure and foreign investor inflows bolstered confidence.
Market Performance
- Nifty 50 Index: Opened at 24,539.15, up 71.70 points (0.29%).
- BSE Sensex: Opened at 81,182.74, gaining 226.41 points (0.28%).
Foreign investors contributed significantly, purchasing equities worth ₹1,797 crore on Thursday.
Focus on RBI MPC Meeting
The ongoing Monetary Policy Committee (MPC) meeting in Mumbai is under scrutiny, though market experts predict a low likelihood of a rate cut.
Ajay Bagga, Banking and Market Expert, highlighted the challenges for the Reserve Bank of India (RBI):
“This RBI MPC has to address the issue of a resurgent inflation along with a slowing economy. By holding real interest rates high for a long period, RBI has reduced aggregate demand, but urban demand has cooled more than anticipated.”
Market sentiment may shift depending on any surprises in the RBI’s stance amid weakening economic indicators.
Sectoral Overview
On the NSE:
- Gainers: Nifty FMCG, Nifty IT, Nifty Consumer Durables, Nifty Oil & Gas.
- Decliners: Other sectoral indices showed a downward trend.
Among Nifty 50 stocks:
- 23 stocks advanced, 26 declined, and 1 remained unchanged.
Technical Analysis
Akshay Chinchalkar, Head of Research at Axis Securities, noted a key technical indicator, the Ichimoku signal, turning positive.
“With 24,550 breaking during yesterday’s session, the market needs to hold short-term support in the 24,240–24,300 area and aim for 24,800. Below 24,240, this outlook requires reevaluation.”
Global Market Insights
- Asian Markets:
- Nikkei 225 (Japan): +0.54%.
- Taiwan Weighted Index: +0.36%.
- Hang Seng (Hong Kong): -1.14%.
- KOSPI (South Korea): Flat.
- US Markets:
- S&P 500: +0.61%.
- Nasdaq: +1.29%.
Outlook
Market participants are optimistic but cautious, closely monitoring the RBI’s policy outcomes and global market cues. The short-term focus remains on maintaining technical support levels while navigating macroeconomic challenges.