Indian equity markets opened on a flat note on Wednesday as investors awaited the outcome of the Reserve Bank of India’s (RBI) Monetary Policy Committee meeting.
The BSE Sensex inched up 64 points, or 0.08 per cent, to trade at 80,774, while the NSE Nifty gained 16 points, or 0.07 per cent, to reach 24,665. However, broader markets witnessed pressure, with the Nifty Midcap 100 and Smallcap 100 indices falling 0.54 per cent and 0.64 per cent respectively.
“Today’s policy outcome is unlikely to sway market direction significantly. Instead, global factors, particularly US President Donald Trump’s recent statements, are having a larger impact,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Among sectoral indices, the Nifty IT index led the losses, shedding 0.92 per cent. Realty and FMCG stocks also saw declines. On the other hand, Nifty Bank posted a modest gain of 0.13 per cent.
Bharti Airtel emerged as the top gainer in the Nifty pack, followed by Kotak Mahindra Bank, SBI Life, Shriram Finance, and Trent. Meanwhile, Coal India was the biggest laggard, down by 1.41 per cent. Other prominent losers included Dr. Reddy’s Labs, Cipla, Hero MotoCorp, and Grasim Industries.
Commenting on geopolitical developments, Vijayakumar added that Trump’s tough stance on trade could lead to short-term headwinds for the Indian economy, potentially impacting exports and GDP growth. “Markets may face correction pressures due to elevated valuations,” he warned.
Experts believe optimism around a potential 25 basis point rate cut from the RBI could support the markets. “Technical support for Nifty is at 24,500, with a stronger base near 24,400. A fall below these levels could trigger further selling. On the upside, resistance lies at 24,800, with a key barrier at 25,000,” said Hardik Matalia, technical analyst at Choice Broking.
Global cues remained mixed. US markets ended in the red overnight, with the Dow down 0.14 per cent, the Nasdaq falling 0.65 per cent, and the S&P 500 down 0.49 per cent. In Asia, Japan’s Nikkei 225 rose 0.62 per cent, while markets in China and Hong Kong traded higher. South Korea’s Kospi slipped 0.21 per cent.
Meanwhile, foreign portfolio investors (FPIs) offloaded Indian equities worth Rs 22 crore on Tuesday, whereas domestic institutional investors (DIIs) were net buyers, investing Rs 3,840 crore.
– IANS