Indian Stock Market Ends Flat After RBI MPC Decisions

On Friday, the Indian stock market closed flat following the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decisions on the repo and CRR rates.

Selling pressure hit IT, financial services, and pharma sectors, while auto and metal stocks saw increased buying interest.

At the close, the Sensex settled at 81,709.12, down by 56.74 points, or 0.07%, while the Nifty finished at 24,677.80, down by 30.60 points, or 0.12%.

The key announcement from the RBI MPC meeting was the decision to keep the repo rate unchanged at 6.5%, while a significant 50 basis point cut in the Cash Reserve Ratio (CRR) to 4% was made.

This move is likely to inject Rs 1.16 lakh crore into the banking system, providing liquidity support.

The Nifty Bank index ended at 53,509.50, down by 94.05 points, or 0.18%, while the Nifty Midcap 100 index closed at 58,704.60, up by 263.05 points, or 0.45%.

The Nifty Smallcap 100 index saw a stronger performance, closing at 19,492.10, up by 158.55 points, or 0.82%.

Among the Sensex constituents, Bharti Airtel, Asian Paints, IndusInd Bank, Bajaj Finserv, Reliance, Infosys, and UltraTech Cement were the top losers, while Tata Motors, Axis Bank, Maruti, L&T, and ITC emerged as the top gainers.

Strong Market Recovery: Nifty 50 Up 3.2%; FIIs Signal Return

Krishna Appala of Capitalmind Research noted that the broader markets showed strong recovery this week, with Nifty 50 gaining 3.2%, and the Midcap and Smallcap indices rising by 3.5% and 3.3%, respectively.

He further added, “FIIs also signalled a slow return, as data from the first week of December revealed a net cash market inflow of approximately Rs 14,000 crore. This comes as a welcome relief after the relentless selling pressure witnessed in November.”

Vipul Bhowar, Senior Director-Listed Investments at Waterfield Advisors, commented that the RBI’s repo rate decision reflects a delicate balancing act between managing inflation and fostering economic growth amid a challenging global economic landscape.

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