Markets Open Slightly Lower Ahead Of RBI Policy Announcement

Indian stock markets started Friday’s session on a muted note as investors waited for the Reserve Bank of India to reveal its latest interest rate decision.

The Monetary Policy Committee, which has been meeting for the past three days, will declare its stance on the repo rate at 10 AM, prompting traders to take a cautious approach early in the day.

The Sensex dipped to 85,187 at the start of trade, down 79 points or 0.09 per cent. The Nifty also slipped marginally by 12 points, settling at 26,021, a decline of 0.05 per cent.

Weakness in key index constituents such as Reliance Industries, Trent, Tata Steel, Bharti Airtel, Tata Motors Passenger Vehicles, Sun Pharma and Titan weighed on the benchmarks.

Meanwhile, gains in stocks including BEL, Maruti Suzuki, Bajaj Finance, Kotak Mahindra Bank, Infosys and Ultratech Cement helped limit the downside.

Market tone in the broader indices remained subdued, with the Nifty MidCap index easing by 0.07 per cent and the Nifty SmallCap index falling 0.30 per cent.

Among sectors, metal and pharmaceutical shares faced selling pressure, each declining around 0.3 per cent.

Real estate counters, however, bucked the weakness, lifting the Nifty Realty index by 0.28 per cent.

Analysts noted that traders are closely watching the RBI’s guidance on inflation and policy direction, which will shape sentiment in the coming sessions.

The rupee’s rebound on Thursday, recovering from 90.42 to 89.97 against the US dollar, has brought some relief to currency markets.

“RBI governor’s views on the rupee today will significantly influence the near-term direction of the currency,” experts added.

Also Read: IndiGo Shares Slide As Widespread Flight Cancellations Persist