Stock Market Today: Sensex, Nifty Trade Flat Ahead Of RBI MPC Meeting Outcome

The Nifty 50 has dropped 4.4 per cent since the last policy meeting in December, impacted by weak corporate earnings and a slowing economy.

Stock Market Today: Investors are looking forward to RBI MPC announcement on Friday

Source : ABPLIVE AI

The Indian benchmark indices, Sensex and Nifty opened flat on Friday, as investors awaited the Reserve Bank of India’s (RBI) monetary policy decision. With economic growth slowing and the government having already cut personal income tax to boost consumption, the central bank is widely anticipated to announce its first rate cut since May 2020.

At 9:20 am, the Sensex was down by 71 points or 0.09 per cent at 77,986, while the Nifty dropped by 13 points or 0.06 per cent to 23,589. Around 1,213 shares advanced, 1,120 shares declined, and 109 shares remained unchanged.

The Nifty 50 has dropped 4.4 per cent since the last policy meeting in December, impacted by weak corporate earnings and a slowing economy. Analysts anticipate the RBI will cut the repo rate by 25 basis points to 6.25 per cent, signalling a shift after maintaining a prolonged pause since 2022.

On Thursday, the Indian rupee hit a record low, weighed down by foreign selling and uncertainty surrounding the U.S.-China trade war. In February, foreign institutional investors (FIIs) sold Indian shares worth Rs 9,709 crore.

Broader Market

The broader market underperformed the benchmarks, with the BSE Midcap index falling 0.4 per cent and the BSE Smallcap index dropping nearly 1 per cent.

Sectorial Update

Sectoral indices showed weakness, with Nifty IT and Nifty Oil & Gas contributing to the Nifty's decline. Nifty IT slipped 0.6 per cent, while Nifty Oil & Gas dropped almost 1 per cent.

Prashanth Tapse, Senior VP (Research), Mehta Equities, said, "In yesterday’s trade, Nifty and Sensex dipped despite positive factors like strong global cues, a sharp drop in US Treasury yields to 4.428%, a weaker US Dollar below 107.50, and tumbling oil prices under $71.50. Today, market focus shifts to the RBI MPC meeting outcome at 10 AM, where the new RBI Governor Sanjay Malhotra is expected to announce his first policy decision. While rates have been unchanged for two years, the market is hopeful for a 25-basis point rate cut to boost growth, following the Union Budget's emphasis on consumption over capex."