Markets Open Flat Ahead Of RBI Policy Decision; Global Sentiment, Trump’s Comments In Focus

Indian stock markets opened on a steady note Wednesday as investors awaited the outcome of the Reserve Bank of India’s (RBI) Monetary Policy Committee meeting.

The Sensex rose by 64 points to 80,774, while the Nifty edged up 16 points to 24,665.

Despite the flat headline indices, broader markets faced pressure.

The Nifty Midcap 100 declined 0.54 per cent, and the Nifty Smallcap 100 slipped 0.64 per cent, indicating cautious sentiment among investors.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “Today’s monetary policy decision is unlikely to influence the market significantly. The overarching influence on the market will be US Donald Trump’s tantrums.”

Among sectoral indices, Nifty IT was the biggest drag, falling 0.92 per cent. Nifty FMCG slipped 0.26 per cent, while Nifty Realty declined 0.82 per cent. Nifty Bank showed modest gains, up 0.13 per cent.

In the Nifty 50, Bharti Airtel led the gainers, followed by Kotak Mahindra Bank, SBI Life Insurance, Shriram Finance, and Trent.

On the downside, Coal India dropped 1.41 per cent, while Dr. Reddy’s Laboratories, Cipla, Hero MotoCorp, and Grasim Industries also saw losses.

Vijayakumar noted, “US President Donald Trump’s rhetoric and actions will continue to weigh on markets in the near-term. India’s response to the rhetoric and actions, so far, has been measured. India is unlikely to concede to the unreasonable demands of the US administration, which could bring short-term pains for the economy in terms of lower exports and a marginal hit to our GDP growth. The GDP growth and corporate earnings may also take a minor hit. This could mean headwinds for the market in the short term since the high valuations provide room for correction.”

RBI Rate Cut Hopes, Domestic Data Keep Optimism Alive

However, optimism persists among some analysts due to strong domestic macro data and hopes of a 25 basis point rate cut from the RBI, which could provide a near-term boost.

On the technical front, Hardik Matalia of Choice Broking asserted, “Technically, immediate support for the Nifty is placed around 24,500, with a stronger support zone near 24,400. A breakdown below these levels could lead to extended selling. On the upside, resistance is likely at 24,800, with a major hurdle near 25,000. A decisive move above 25,000 is essential for any potential trend reversal and fresh buying momentum.”

Global cues remained mixed. Wall Street closed lower overnight, Dow Jones fell 0.14 per cent, Nasdaq dropped 0.65 per cent, and S&P 500 slid 0.49 per cent.

In Asia, Japan’s Nikkei 225 climbed 0.62 per cent, while China and Hong Kong markets traded higher. South Korea’s Kospi, however, dipped 0.21 per cent.

In terms of flows, foreign portfolio investors (FPIs) were net sellers on Tuesday, offloading equities worth Rs 22 crore. In contrast, domestic institutional investors (DIIs) made net purchases of Rs 3,840 crore.

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