Stock Markets On Edge Ahead Of RBI MPC Decision: Sensex Over 400 Points Up, Nifty Remains Flat

Improving global risk appetite, coupled with hopes of easing geopolitical tensions in West Asia, helped support sentiment ahead of the opening bell.

Analysts believe the central bank's guidance could determine the market's direction through the remainder of the week.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• Hopes for US-Iran deal boosted global markets, lowered crude.
• Indian markets opened mixed, tracking global optimism, RBI focus.
• Investors focused on RBI policy for rates, economic outlook.

Indian benchmark indices opened on a mixed note on Wednesday, tracking upbeat global markets after fresh optimism over a possible breakthrough in US-Iran negotiations lifted investor sentiment. Market participants also remained focused on the Reserve Bank of India's (RBI) monetary policy decision due later in the day.

The BSE Sensex soared more than 400 points and crossed 78,850, while the NSE Nifty50 stood nearly flat above 24,600, as of 9:15 AM.

GIFT Nifty Signals Strong Opening

The GIFT Nifty traded at 24,728, up 172 points, indicating a higher opening for domestic benchmarks.

Improving global risk appetite, coupled with hopes of easing geopolitical tensions in West Asia, helped support sentiment ahead of the opening bell.

At around 9:02 AM, the Sensex was trading at 79,148.60, up 719.65 points or 0.92 per cent, while the Nifty gained 13.55 points, or 0.06 per cent, to 24,628.45.

RBI MPC Decision In Spotlight

While global cues remained supportive, investors are expected to keep their attention firmly on the outcome of the RBI's Monetary Policy Committee (MPC) meeting.

The central bank is widely expected to leave key policy rates unchanged. Apart from the rate decision, market participants will closely track Governor Sanjay Malhotra's commentary for cues on inflation, liquidity conditions and the outlook for economic growth.

Analysts believe the central bank's guidance could determine the market's direction through the remainder of the week.

Hopes Of US-Iran Deal Lift Global Markets

Global markets rallied after US Treasury Secretary Scott Bessent said Washington and Tehran could reach an agreement "as soon as Tuesday or Wednesday", raising hopes of a resolution to the conflict in West Asia.

According to Bessent, a successful agreement could pave the way for the full reopening of the Strait of Hormuz, easing concerns over disruptions to global energy supplies.

The possibility of a diplomatic breakthrough improved investor confidence and encouraged buying across equity markets.

Asian Equities Extend Rally

Markets across the Asia-Pacific region traded sharply higher following the positive developments.

Japan's Nikkei 225 climbed around 3 per cent, while South Korea's Kospi advanced approximately 3.3 per cent, as investors welcomed signs of easing geopolitical risks.

The gains reflected improving global risk sentiment after weeks of uncertainty surrounding energy supplies and West Asia.

Wall Street Rebounds Sharply

US markets ended Tuesday's session with strong gains.

The Dow Jones Industrial Average rose 1.71 per cent, while the Nasdaq Composite surged 2.59 per cent.

The S&P 500 gained 1.79 per cent to finish at 7,736.49, marking its first record closing high since June. The rally was supported by renewed buying in artificial intelligence-related stocks, which helped lift broader market sentiment.

Crude Oil Slips Below $80

Crude oil prices eased as traders assessed the possibility of improved supply conditions if negotiations between the US and Iran result in a formal agreement.

Brent crude futures slipped below the $80 per barrel mark, with the August contract trading at $79.16, down 0.25 per cent.

Lower crude prices are generally viewed as favourable for India, as they help reduce inflationary pressures, support the rupee and ease the country's import bill.

Gold And Silver Trade Mixed

In the commodities market, gold futures edged 0.03 per cent higher, while silver futures declined 0.33 per cent in early trade.

Investors remained cautious ahead of the RBI policy announcement and further developments on the geopolitical front.