Indian Markets Open Lower Ahead of RBI MPC Decision

Indian equity markets posted moderate losses in early trade on Friday as investors awaited cues from the Reserve Bank of India’s Monetary Policy Committee (MPC) on the key repo rate.

By 9:25 AM, the Sensex had fallen 134 points, or 0.16 per cent, to 83,179, while the Nifty eased 56 points, or 0.22 per cent, to 25,586.

The broader market saw mixed performance, with the Nifty Midcap 100 down 0.48 per cent and the Nifty Smallcap 100 falling 0.97 per cent.

Among sectoral indices, IT stocks led the losses, declining 1.76 per cent, followed by pharma, down 1.03 per cent. PSU and private banks, as well as the oil and gas sectors, traded in the red.

Market watchers see immediate support for Nifty at 25,450–25,500, with resistance at 25,750–25,800.

The MPC is expected to keep the repo rate at 5.25 per cent, focusing on managing liquidity and ensuring smooth transmission.

Since February 2025, the RBI has reduced the repo rate by 125 basis points.

Asian markets traded mixed, with China’s Shanghai Composite up 0.11 per cent, Shenzhen 0.65 per cent, and Japan’s Nikkei gaining 0.51 per cent.

In contrast, Hong Kong’s Hang Seng fell 1.19 per cent and South Korea’s Kospi dropped 1.79 per cent.

US markets ended lower overnight, with the Nasdaq down 1.59 per cent, the S&P 500 declining 1.23 per cent, and the Dow Jones losing 1.2 per cent.

On February 5, foreign institutional investors (FIIs) net sold equities worth ₹2,151 crore, while domestic institutional investors (DIIs) were net buyers at ₹1,130 crore.

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