Indian markets geared up for more volatility today. Investors remained extremely cautious as markets waited for the Reserve Bank of India’s Monetary Policy Committee (MPC) to reveal its final decision on repo rate and fiscal policy going forward.
The BSE Sensex started trading at 80,165.18, crashing more than 100 points, while the NSE Nifty50 rang in the opening bell near 24,650, jumping almost 40 points, around 9:15 AM.
On the 30-share Sensex, Sun Pharma, Trent, M&M, Reliance, and Tech M stood among the gainers. Meanwhile, the laggards in the early market hour included Eternal, Bajaj Finance, L&T, Infosys, and Bharti Airtel.
In the broader markets, the Nifty Midcap Select dominated in green and climbed 0.44 per cent. Sectorally, the Pharma index stood out as it jumped 1.08 per cent, followed by the Healthcare index which rose 0.91 per cent.
Notably, the GIFT Nifty gave signals of a muted session for traders after it slipped marginally to test 24,750, near 8:30 AM today. In the pre-open session, the Sensex tanked almost 100 points and stood below 80,200, while the Nifty inched up 9 points to touch 24,621, around 9:09 AM.
Market watchers said the RBI’s upcoming policy decision would be a key trigger for short-term direction. The RBI Monetary Policy Committee began its three-day meeting on Monday, with the decision scheduled to be announced today at 10 AM.
How Did Markets Fare Yesterday?
In the previous session on Tuesday, Indian equity benchmarks closed lower after a volatile trading session, marking the eighth consecutive day of decline amid sustained foreign fund outflows and caution ahead of the MPC reveal.
The Sensex slipped 97.32 points, or 0.12 per cent, to finish at 80,267.62. The broader Nifty fell 23.80 points, or 0.10 per cent, to close at 24,611.10.
Analysts said caution prevailed as investors awaited the RBI’s commentary on future interest rate moves, even though a status quo on policy rates is widely expected. “The domestic market traded within a narrow range on the monthly expiry day, as investors exercised caution ahead of the RBI’s policy. The market made an attempt to stabilise after last week’s sustained decline,” explained Vinod Nair, Head of Research at Geojit Investments.
