Kolkata: Both Sensex 30 and Nifty 50 opened in the green on Wednesday, October 1 ahead of the crucial Reserve Bank of India’s Monetary Policy Committee’s decision on whether to hold the key policy rates stead or trim them. At 9:20 am, Sensex was trading at 80,314.14, up 46.52 points or 0.058% while Nifty was trading at 24,632.00, up 20.90 points or 0.085%. However both indices began to show weakness and slipped in the red at 9:21 am. Then the indices moved back int the green by 9:30.
Around 8:30 am, the crucial GIFT Nifty was down by about 6 points or 0.02%. Asian cues were mixed this morning. The important indicator Japan’s Nikkei 225 declined 1.05%. But South Korea’s benchmark Kospi rose 0.68%. Markets in China and Hong Kong remained closed for holiday. Australia’s S&P/ASX 200 was trading 0.25% lower in early trade.
Early gainers in NSE
According to NSE, the early prominent gainers this morning were ATLANTA, SURYODAY, GSLSU, BOROSCI, RACLGEAR, JAYAGROGN, STEELXIND, HARDWYN, PIONEEREMB, ZUARIIND.
Waiting for RBI
For the eighth consecutive day, the equity market continued to reel under pressure on September 30. Sensex 30 ended the session at 80,267.62, down 97 points, or 0.12%. The big cap index declined 3.31% in these eight sessions. Nifty 50 ended the day at 24,611.10, down 23.80 points (or 0.097%). The the eight days, this index dropped 3.20%. But compared on a monthly basis, both Sensex and Nifty closed 0.50 percentage points higher.
Analysts said the markets were cautious before the RBI MPC decision on whether the policy rates will be held steady or trimmed. Economists were divided in their opinion. While a Reuters poll suggested that RBI would hold rates steady, SBI Research thought a 25-basis point cut was called for to help trigger consumption in the economy while Morgan Stanley thought RBI could cut policy rates by 25 basis points not only in this meeting but also in the December meeting, taking advantage of the benign inflation rates.
Vinod Nair, head of research, Geojit Investments was quoted in the media as saying, “Market participants are keenly awaiting the RBI’s commentary for insights into future interest rate trajectories, although a status quo on rates is widely expected. The near-term market outlook remains cautious, with price action likely to stay range-bound. Key developments, particularly regarding tariff policies and the upcoming earnings season, will be crucial in shaping the market’s trajectory beyond the current range.”
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