Sensex and Nifty go up ahead of the RBI's monetary policy decision.

Sensex and Nifty Climb as Markets Await RBI's Monetary Policy Announcement

Written by: Supriya Kadu

Edited by: Omkar Devadkar

Last Updated: October 09, 2024

Summary: The Nifty 50 index increased 45 points to 25,058 while the Sensex was up 143 points at 81,784 as of 9:21 a.m.

Stock Market Today: Wednesday saw a little increase in the benchmarks for Indian equities ahead of the Reserve Bank of India's anticipated monetary policy announcement later in the day.

Gains in Bharti Airtel, Tata Motors, State Bank of India, ICICI Bank, Tata Consultancy Services, HCL Technologies, and Tech Mahindra drove the Sensex up as much as 320 points, while the Nifty 50 index was trading above its significant psychological milestone of 25,000.

However, selling pressure in Reliance Industries, HDFC Bank, ITC, Larsen & Toubro, and Kotak Mahindra Bank capped the gains. The Nifty 50 index rose 45 points to 25,058 and the Sensex rose 143 points to 81,784 as of 9:21 a.m.

At its policy meeting this Wednesday, the Reserve Bank of India may retain the repo rate at 6.5% for the eleventh time since February 2023. More than 80% of experts feel that this shift will not occur soon.

However, a smaller group believes the central bank will turn neutral, perhaps leading to future rate decreases due to slower economic growth and lower global interest rates.

Twelve Reuters-surveyed analysts predict a 25 basis point reduction in the rate, and one predicts a reduction to 6.15 percent. While they acknowledge it's a close call, Nomura economists give a rate cut in October a 55% chance.

According to analysts, the US Federal Reserve's latest 50 basis point rate decrease may persuade the RBI to start lowering rates earlier than 2025, as was previously widely expected.

The majority of Asian markets saw gains. The Nikkei in Japan increased by 0.68 percent, the S&P ASX 200 index in Australia up by 0.2% percent, and the KOSPI in South Korea decreased by 0.61 percent.

Mainland China stocks were about to halt a 10-day winning streak when they opened much lower on Wednesday. This was because policymakers had not been able to trust the stimulus initiatives meant to boost the economy.

The blue-chip CSI300 Index plunged more than 5%, while the benchmark Shanghai Composite Index sank 4.6%.

In the domestic market, the Nifty Healthcare index saw a 1.2% increase, driving higher trading on eleven of the 13 sector gauges maintained by the National Stock Exchange. The Nifty Auto, Media, IT, PSU Bank, Pharma, Realty, and Realty indexes all saw increases of about 1%.

However, there was selling pressure on metal, private bank, and FMCG equities.

Mid- and small-cap shares outperformed the big rivals as the nifty Midcap 100 index increased 0.90 percent and the nifty Smallcap 100 index improved 0.96 percent.

Bharat Petroleum was the Nifty's biggest gainer, up 2.25 percent to Rs 345.60 as global oil prices fell. Bajaj Finance, Dr. Reddy's Labs, Cipla, State Bank of India, Tech Mahindra, Cipla, and Shriram Finance all experienced growth.

Companies like ONGC, HDFC Bank, Nestle India, ITC, JSW Steel, Grasim, Kotak Mahindra Bank, and Hindalco were in loss. There was a good overall market breadth, with 2,429 shares rising and 512 shares falling on the BSE.

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