Stock Market Holds Steady Ahead Of RBI MPC Meeting Outcome

The stock market showed minimal movement early on Thursday as investors adopted a cautious stance ahead of the Reserve Bank of India’s (RBI) monetary policy committee (MPC) meeting, scheduled for Friday. As the market waited for the outcome, both the Sensex and Nifty experienced slight declines.

At 9:36 a.m., the Sensex stood at 78,164.89, down by 106.39 points or 0.14%. Meanwhile, the Nifty slipped by 34 points, or 0.15%, to reach 23,662.10. Despite early losses, market participants were focused on the upcoming MPC meeting, which has left many investors cautious.

Experts have indicated that Nifty could find support at the 23,600 mark, followed by levels at 23,500 and 23,400. On the upside, resistance is expected at 23,800, with further levels at 23,900 and 24,000. Hardik Matalia, a Derivative Analyst at Choice Broking, outlined these levels, suggesting that traders remain focused on these key points as the market waits for clarity from the RBI’s decision.

Sector Market Performance And Notable Stocks

On the Nifty 50 index, stocks such as Infosys, Bajaj Finance, and Tata Consultancy Services showed positive movement. However, shares of Mahindra and Mahindra, ITC, Bharti Airtel, and HDFC Bank exerted downward pressure on the index.

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In terms of sector performance, most sectors traded in the green, with Nifty auto and Nifty FMCG dragging the broader market lower. Additionally, Swiggy, the online food delivery platform, saw a decline in its stock price after posting disappointing Q3 results.

Many investors are betting on a 25 basis points (bps) rate cut from the RBI’s MPC to stimulate economic growth.

The likely move would offer comfort on the currency and inflation fronts, in line with the Budget’s focus on reviving consumption and supporting economic growth.

FIIs Turn Net Sellers Amid Domestic And Global Uncertainty

On February 5, foreign institutional investors (FIIs) turned net sellers, offloading equities worth Rs 1,682.83 crore. In contrast, domestic institutional investors (DIIs) purchased equities worth Rs 996.28 crore, signaling mixed sentiment in the market.

Sameet Chavan, Head of Research, Technical, and Derivative at Angel One, noted that traders are likely booking profits in anticipation of key upcoming events, including the MPC outcome and the Delhi state election results. He also highlighted the ongoing global trade tensions, which continue to add an element of uncertainty to the market.

As the market stands at a crossroads, investors remain focused on the outcome of the RBI’s MPC meeting and the broader economic landscape. With key domestic and global factors influencing market sentiment, all eyes are on the central bank’s next move, which could shape the direction of the market in the coming weeks.