Indian Stock Market Opens Flat Ahead Of RBI’s MPC Announcement

The Indian stock market opened with little movement on Friday, staying cautious ahead of the upcoming announcement from the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting. Market participants are closely watching decisions regarding the repo and cash reserve ratio (CRR) rates.

Market Shows Positive Momentum

At around 9:23 AM, the Sensex was trading at 81,775.54, up by 9.68 points or 0.01%, while the Nifty stood at 24,712.35, gaining 3.95 points or 0.02%. The overall market sentiment remained positive, with 1,500 stocks on the National Stock Exchange (NSE) trading in the green, while 647 stocks were in the red.

Also Read: RBI Maintains Repo Rate at 6.5%; Projects Economic Growth For FY25

FII Buying Boosts Market Sentiment

Experts noted that the market’s bullish sentiment was fueled by a shift in the behavior of foreign institutional investors (FIIs). After two months of sustained selling, FIIs turned buyers in December, contributing to a positive change in market sentiment. “Encouraged by FII buying, retail investors have also joined the buying trend, triggering short-covering and causing sharp intra-day volatility,” analysts said.

RBI Policy And Economic Outlook In Focus

The market will closely monitor the RBI’s policy response, particularly its commentary on growth and inflation. Investors are keen to understand how the central bank plans to manage the economy in light of current challenges, and this could influence future market movements.

Sectoral Performance And Key Indices

In terms of sectoral performance, the Nifty Bank index saw a decline of 63.45 points, or 0.12%, to reach 53,540.10. Meanwhile, the Nifty Midcap 100 index gained 45.15 points, or 0.08%, reaching 58,486.70, and the Nifty Smallcap 100 index rose by 23.35 points, or 0.12%, to 19,356.90.

Sensex Gainers And Losers

Among the top gainers in the Sensex pack were ICICI Bank, ITC, M&M, Bharti Airtel, Sun Pharma, HCL Tech, JSW Steel, IndusInd Bank, and Asian Paints. In contrast, Tata Motors, Infosys, TCS, L&T, and SBI were among the top losers.

Global Market Trends

In global markets, Asian indices showed mixed results. While Seoul and Japan were trading in the red, markets in China, Hong Kong, Jakarta, and Bangkok were in the green. On the previous trading day, the US stock markets closed in the red.

FII And DII Activity

On December 5, FIIs made a net purchase of equities worth Rs 8,539.91 crore, while domestic institutional investors (DIIs) sold equities worth Rs 2,303.64 crore, reflecting contrasting actions by the two investor groups.

As the market awaits further developments, including the RBI’s decision on monetary policy, investors are likely to stay cautious but optimistic about future trends.