The Indian stock market closed in the green on Thursday ahead of the Reserve Bank of India’s key monetary policy committee (MPC) decision on the repo rate.
At the end of trading, the Sensex was up 443.79 points (0.55 per cent) at 81,442.04, and the Nifty gained 130.70 points (0.53 per cent) to close at 24,750.90.
On Friday, the MPC’s decisions will be announced by RBI Governor Sanjay Malhotra. According to experts, the Central Bank is likely to cut the repo rate by 0.25 per cent.
Meanwhile, the rally extended to mid-cap and small-cap stocks. The Nifty Midcap 100 index was up 378.35 points (0.65 per cent) at 58,303, and the Nifty Smallcap 100 index rose 175.50 points (0.96 per cent) to 18,432.60.
On a sectoral basis, IT, financial services, pharma, FMCG, metals, realty and energy ended in the green, while auto, PSU banks, media and private banks finished in the red.
According to Sundar Kewat from Ashika Institutional Equity, the Nifty traded in a volatile range as participants remained cautious ahead of the RBI’s monetary policy decision.
“Easing US treasury yields and a weakening US dollar provided some support to Indian equities, although global sentiment remains cautious amid persistent US-China trade tensions,” he added.
According to analysts, a “golden crossover” is visible on the daily chart, indicating the potential for a strong uptrend in the short term.
“Support continues to hold at 24,500; unless the Nifty breaks below this level, a serious correction is unlikely. On the contrary, a steady or even sharp recovery appears possible in the near term,” said Rupak De from LKP Securities.
The Indian rupee appreciated, driven by a rebound in risk sentiment and foreign fund inflows. The currency also benefited from the general strength observed across other regional currencies.
“Looking ahead, market participants are pricing in another interest rate cut from the RBI, buoyed by stable inflation figures. The rupee’s future trajectory will largely depend on the RBI’s upcoming policy stance and any liquidity measures it introduces,” said Dilip Parmar from HDFC Securities.
(IANS)
