Synopsis
Indian stock markets are trading higher today. Sensex and Nifty extend gains for a second day. Investors are closely following the meeting of the Monetary Policy Committee of the Reserve Bank of India. Market analysts expect the RBI to maintain interest rates but signal future hikes. This political decision will influence the banking, automobile and real estate sectors.
IANSIndian stock markets surged for a second day, with Sensex and Nifty extending gains as investors anticipate the Reserve Bank of India’s monetary policy decision.
Indian stock market was trading in the green on Friday, with Sensex And Clever extending gains for the second consecutive session as investors await the outcome of the RBI’s Monetary Policy Committee (MPC) meeting today.
Sensex gained 270 points to 74,629.94, while Nifty 50 rose over 62 points to 23,478.95. This came as India’s VIX, which measures market volatility, fell more than 2% to 15.89.
Infosys, UltraTech Cement, TCS, Tech MahindraM&Ms and Maruti Suzuki stocks gained over 1% each to lead gains on Sensex. Tata Steel Stocks, meanwhile, fell more than 1%, leading to losses on the benchmark index.
Broader markets also traded in the green, with the Nifty Smallcap 100 and Nifty Midcap 100 indices each gaining more than 0.3%. All sectoral indices opened in the green, with Nifty Consumer Durables, Nifty IT and Nifty Media up almost 1% each. Around 1,824 stocks advanced on NSE, while 523 declined and 101 remained unchanged.
What is driving the stock market up today?
“There are some slight positive indications for the market today. There are signs of weakness in AI trading in the US, South Korea and Taiwan and a shift away from tech stocks, but it is too early to say whether this will persist,” said VK Vijayakumar, chief investment strategist at Geojit Investments.
The market today will focus on monetary policy and the RBI governor’s message, the analyst said. “The MPC is likely to maintain rates with expectations of a rate hike later in the year to combat inflation which is expected to rise in the second half of FY27. The RBI is likely to revise FY27 GDP growth downward and CPI inflation upward in the backdrop of the energy shock and its implications,” it added.
According to Vijayakumar, the most likely policy action is a “hawkish hold”, that is, the RBI would hold rates without any changes but send a hawkish message that inflation is about to rise and, therefore, expect a rate hike later this year. If the RBI decides to act now with a 25 basis point rate hike, it will shift the banking stocks sharply upward since they would benefit from rate increases, he added. However, a rate hike would be negative for interest rate elastic segments like auto and real estate, the analyst added.
Rupee gets up
The rupee meanwhile gained 8 paise to 95.66 against the US dollar in early trade. “As India’s import bill comes under pressure from high commodity prices and continued fund outflows from FIIs, participants will closely watch the governor’s comments for clues on inflation, monetary stability and future policy direction,” said Jateen Trivedi, vice president research analyst for commodities and currencies at LKP titles.
The analyst expects the short-term range for the rupee to be between 95.25 and 96.25.
FII Sale continue
Foreign investors remained bearish on Indian markets. FIIs net sold Indian stocks worth Rs 4,447 crore on Thursday, according to NSE data.
Notably, FIIs remained net sellers of Indian stocks for five consecutive sessions.
(With contribution from agencies)
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
Subscribe to AND Bonus and read it Electronic document on economic times Online.and Sensex today.
Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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