Sensex, Nifty 50 on RBI MPC announcement day: The inventory market went into the purple upon opening as buying and selling started on Friday, February 7, the day the brand new Reserve Financial institution of India (RBI) governor Sanjay Malhotra is about to announce the rate of interest determination of the Financial Coverage Committee (MPC).
Sensex, Nifty 50 on RBI MPC announcement day: Individuals stroll previous the Bombay Inventory Alternate (BSE) constructing in Mumbai (Francis Mascarenhas/Reuters)
At 9:20am, the benchmark BSE Sensex was down by 79.83 factors or 0.10%, reaching 77,978.33. The broader NSE Nifty opened 19.50 factors down or 0.08% within the purple, reaching 23,583.85.
The MPC determination announcement is at 10am.
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Which shares fell essentially the most?
Among the many 30 Sensex shares, Energy Grid Company of India Ltd fell essentially the most by 2.76%, buying and selling at ₹273.50. This was adopted by ITC Ltd, which fell 1.11%, buying and selling at ₹436.50, and SBI, which fell 1.00%, buying and selling at ₹744.80.
Solely 11 out of the 30 Sensex shares have been within the inexperienced.
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How did particular person sectors carry out?
Among the many Nifty sectoral indices, the Nifty Media index fell essentially the most by 0.94%, reaching 1,622.90, adopted by the Nifty Oil & Gasoline Index, which fell 0.85%, reaching 10,504.10, and Nifty FMCG, which fell 0.73%, reaching 55,434.80. The Nifty FMCG Index had seen falls on open from no less than Tuesday.
The Oil & Gasoline Index had risen rose essentially the most on Wednesday. Its contrasting fall at the moment comes amid an increase in international oil costs.
Brent crude was up 0.55% or by $0.41, buying and selling at $74.70 per barrel for April 2025 futures, in response to Bloomberg knowledge, whereas WTI Crude was up 0.52%, or by $0.37, buying and selling at $70.98 per barrel for March 2025 futures.
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How did the inventory market carry out through the earlier session?
The inventory market closed within the purple on Thursday, dragged down by actual property, shopper durables, and mid and small cap monetary providers shares.
The Sensex closed within the purple by 213.12 factors or 0.27%, reaching 78,058.16. The broader Nifty closed 92.95 factors or 0.39% within the purple, reaching 23,603.35.
“The Nifty’s drop yesterday pushed it back below the falling trendline it broke above of two days ago, so this lack of upside follow through shows resistance at higher levels,” stated Akshay Chinchalkar, Head of Analysis at Axis Securities. “A break of either zone will determine the next tactical trend, which may be triggered by the RBI’s rate decision today – the market will be watching the commentary from the MPC more closely given that a 25 bps rate cut is already well priced-in.”
Among the many 30 Sensex shares, Bharti Airtel Ltd fell essentially the most by 2.47%, closing at ₹1,619.55. This was adopted by Titan Firm Ltd, which fell 2.28%, closing at ₹3,410.75, and NTPC Ltd, which fell 2.13%, closing at ₹312.75.
Solely 10 out of the 30 Sensex shares have been within the inexperienced.
By way of sectors, the Nifty Realty Index fell essentially the most by 2.19%, closing at 916.80. This was adopted by Nifty Client Durables which fell 1.84%, closing at 38,104.00, and Nifty Midsmall Monetary Providers, which closed 1.19% down or at 15,304.60.
What are the expectations from the 2025 RBI MPC announcement?
This time, a 25 foundation level repo fee lower has been broadly anticipated to happen to inject extra liquidity into the market, taking the benchmark lending fee from the present 6.5% to six.25%.
For the earlier determination, the RBI MPC had made a 50 foundation level lower within the money reserve ratio (CRR), making it 4%, however stored the repo fee unchanged at 6.5%.
This comes at a time when India’s GDP progress slowed right down to a 5.4% for the second quarter of the monetary yr 2024-25. This was the slowest progress in seven consecutive quarters.
It additionally comes at a time when inflation for December 2024 was discovered to have eased right down to a four-month low of 5.22%, making the circumstances for a possible fee lower extra beneficial.
“A 25bps rate cut is highly anticipated, along with further initiatives to boost liquidity in the banking sector,” stated Abhishek Pandya, Analysis Analyst at StoxBox. “Recently, the RBI has implemented important measures to enhance liquidity, such as an Open Market Operation of Rs. 60,000 crore and a 56-day Variable Rate Reverse Repo of Rs. 50,000 crore, aimed at sustaining market liquidity.”
“Moreover, inflation indicators have shown improvement, aligning with expectations, as the CPI inflation decreased from a 14-month high of 6.2% in October 2024 to 5.2% in December 2024, primarily due to lower food inflation,” he added.