Business

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.

Also Read: JP Morgan Gives Overweight Rating To Adani Group Bonds; Sees Stable Liquidity

Mankrit Kaur

Recent Posts

PM Modi Gifts Eco-Friendly Wooden Alphabet Set To Mirabel Rose Vance

During his diplomatic visit to the United States, Prime Minister Narendra Modi presented an eco-friendly…

5 hours ago

PM Modi Gifts Indian Folk Art Jigsaw Puzzle, Wooden Toy To Vance Family

The puzzle includes Madhubani Painting from Bihar, celebrated for its intricate patterns, bright colors, and…

5 hours ago

PM Modi Gifts Exquisite Silver Hand-Engraved Mirror To First Lady Of France

As part of his diplomatic visit to France, Prime Minister Narendra Modi presented a beautifully…

6 hours ago

PM Modi Wraps Up Historic Visit To France, President Macron Sees Him Off

Prime Minister Narendra Modi has concluded his highly productive three-day visit to France, marking the…

6 hours ago

Adani Group Launches Largest Skill Development Program Under ‘Make In India’ Initiative

In a significant move to strengthen India's workforce, Adani Group has unveiled its largest-ever skill…

7 hours ago

India’s CPI Inflation Drops To 5-Month Low Of 4.31% In January

India's retail inflation, based on the Consumer Price Index (CPI), eased to 4.31% in January,…

8 hours ago