Nifty and Sensex opened lower on Thursday as investors await the Reserve Bank of India’s (RBI) policy decision, with expectations that the central bank will keep interest rates unchanged.
The NSE Nifty 50 index dropped 0.35 per cent to 24,215.15, while the S&P BSE Sensex .BSESN fell 0.34 per cent to 79,202.21 as of 9:38 a.m. IST.
The RBI is anticipated to maintain its key policy rates steady for the ninth consecutive meeting amid ongoing inflationary pressures. Market participants will closely scrutinise the central bank’s hawkish “withdrawal of accommodation” policy stance and its commentary on economic conditions.
Rajesh Bhosale, Equity Analyst at Angel One said that traders appear to be keeping positions light ahead of the RBI‘s decision. Analysts suggest that any dovish remarks on the economy or interest rates could boost momentum in domestic equities, particularly in rate-sensitive sectors such as real estate, automotive, and banking.
Of the 13 major sectors, ten recorded losses. The IT .NIFTYIT and energy .NIFTYENR sectors were among the top decliners, each down approximately 0.9 per cent.
On a positive note, Tata Motors (TAMO.NS) saw a gain of about 1.6 per cent, the highest among Nifty 50 stocks. Several brokerages have highlighted that its new “Curvv.ev” car could create price parity between electric and internal combustion engine vehicles and offers a superior range compared to most other EVs.
Asian markets showed little movement on Thursday, with the MSCI Asia ex-Japan index up by 0.06 per cent.
US equities closed lower overnight, led by declines in technology stocks, as investors remained cautious following recent market turbulence.
