The Indian Stock Market Indices Opened Higher Following the RBI’s MPC Announcement.

Indian Stock Market Opens Higher Post RBI MPC Announcement

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: December 06, 2024

Summary: The BSE Sensex opened at 81,887.54 points, up 0.15 percent, while the NSE Nifty 50 was up 0.09 percent at 24,729.45 points.

The stock market opened in green Friday as investors awaited comfort after a slowdown in economic growth, as the Reserve Bank of India (RBI) was scheduled to make its monetary policy announcement.

The BSE Sensex opened at 81,887.54 points, up 0.15 percent, while the NSE Nifty 50 was up 0.09 percent at 24,729.45 points.

The gains were recorded in 12 of the 13 major sectors during the opening. Each of the larger, more domestically oriented smallcaps and midcaps had a 0.2% increase.

The RBI may reduce the cash reserve ratio (CRR) in response to the shockingly low GDP growth, which fell to a seven-quarter low of 5.4% in the July-September 2024 quarter. The CRR reduction will signal the RBI's aim to relax monetary policy without reducing the repo rate.

Analysts predict that the repo rate, which is the interest rate at which the RBI loans to other banks, will probably stay at 6.5%.