- Indian markets cautious, awaiting key RBI monetary policy announcement.
- RBI likely holds rates, while global markets show subdued performance.
- Asian markets fell, crude oil elevated, gold prices eased.
Indian equity markets are expected to begin Friday’s session cautiously as investors await the Reserve Bank of India’s monetary policy announcement later in the day while monitoring global market weakness and developments in West Asia.
Both benchmarks started the session on a volatile note. The BSE Sensex began trading near 75,550, climbing close to 200 points, while the NSE Nifty50 opened the day around 23,450, jumping almost 50 points, as of 9:15 AM.
GIFT Nifty Indicates Cautious Start
Early signals from the derivatives market pointed to a subdued opening.
The GIFT Nifty was trading at 23,534.50, up 27 points, suggesting limited upside for domestic equities despite positive cues from overnight US markets.
Traders are expected to avoid aggressive positioning until there is greater clarity on the RBI’s policy stance.
In the pre-open session at around 9:04 AM, the Sensex was trading at 74,520.83, up 160.82 points or 0.22 per cent, while the Nifty stood at 23,424.60, higher by 8.05 points or 0.03 per cent.
The muted gains reflect a wait-and-watch approach ahead of the RBI’s policy outcome, which is expected to be the key market-moving event of the day.
Also Read : When Is RBI MPC Decision? Here’s How To Watch Governor Malhotra’s Policy Statement Live
RBI Monetary Policy Outcome In Sharp Focus
Investor attention is firmly centred on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, with the policy decision scheduled on Friday morning.
The central bank is widely expected to keep the repo rate unchanged at 5.25 per cent, as policymakers balance inflation concerns against growth considerations.
Beyond the rate decision, market participants will closely scrutinise RBI Governor Sanjay Malhotra’s commentary for insights into the inflation outlook, liquidity conditions, and the broader economic trajectory. Any shift in guidance could influence expectations around future policy action and shape market sentiment in the near term.
Asian Markets Under Pressure
Markets across the Asia-Pacific region traded lower on Friday morning, reflecting lingering concerns over global growth and geopolitical risks.
South Korea’s Kospi emerged as the biggest loser, tumbling around 6 per cent, while Japan’s Nikkei 225 and China’s CSI 300 also traded in negative territory.
The weakness in regional equities tempered optimism generated by Wall Street’s overnight performance.
Wall Street Delivers Mixed Signals
US markets ended on a mixed note overnight.
The S&P 500 gained 1.73 per cent, while the Dow Jones Industrial Average advanced 0.41 per cent. However, the technology-heavy Nasdaq Composite slipped marginally, ending 0.09 per cent lower.
The divergence reflected selective buying amid continued uncertainty over global macroeconomic conditions and geopolitical developments.
ALSO READ: EMIs, FDs And Household Budgets: What Families Should Watch Before The MPC
Crude Oil Remains Elevated Amid West Asia Concerns
Energy prices remained firm as investors assessed the evolving situation in West Asia.
Brent crude futures rose 0.39 per cent to trade around $95.40 per barrel, supported by concerns that the conflict in the region could persist longer than previously anticipated.
For India, elevated crude oil prices remain a critical variable, given their implications for inflation, fiscal balances, and corporate margins.
Gold, Silver Ease Ahead Of Key Events
Precious metals traded lower in early deals as investors reduced safe-haven positions ahead of the RBI policy announcement.
Gold futures slipped 0.63 per cent, while silver futures declined 1.26 per cent, reflecting a cautious risk appetite across global markets.
