India’s benchmark indices slipped on Thursday as investors remained cautious ahead of the Reserve Bank of India’s (RBI) monetary policy committee (MPC) meeting, scheduled for Friday.
The Sensex dropped 106.39 points, or 0.14%, to 78,164.89, while the Nifty declined by 34 points, or 0.15%, to 23,662.10 in early trade.
According to market experts, the indices are in a consolidation phase, with the RBI’s upcoming rate decision likely to influence future market direction.
Investors are anticipating a 25 basis points (bps) rate cut, which could provide a boost to economic growth, aligning with the government’s Union Budget focus on stimulating the economy while maintaining fiscal discipline.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The market is moving into consolidation on expectations of a growth pickup in the coming quarters. In the near term, a potential 25 bps rate cut by the MPC could offer a mild boost. However, a depreciating rupee is not conducive for a rate cut.”
Ajay Bagga, a banking and market expert, said, “Global markets saw a measured rebound mid-week, with steady gains across equities and bonds. However, volatility persists, driven by renewed trade tensions as U.S. President Donald Trump reintroduced parts of his tariff agenda, stoking concerns over global trade dynamics.”
Sector-wise, Nifty Bank, Nifty Auto, and Nifty FMCG were trading in the red, while IT, Media, and Pharma showed gains.
Among Nifty 50 constituents, Infosys, Bajaj Finance, and Tata Consultancy Services were the top gainers, while Mahindra & Mahindra, ITC, Bharti Airtel, and HDFC Bank lagged.
Swiggy’s stock fell following weaker-than-expected Q3 results. Several major companies, including Bharti Airtel, State Bank of India, ITC, Trent, Britannia Industries, REC, Hero Motocorp, BSE Limited, and Aurobindo Pharma, are set to announce their third-quarter earnings on Thursday.
On Wednesday, foreign institutional investors (FIIs) were net sellers, offloading equities worth ₹1,682.83 crore, while domestic institutional investors (DIIs) purchased stocks worth ₹996.28 crore.
Sameet Chavan, Head of Research (Technical and Derivatives) at Angel One, said that traders preferred to book profits on long positions ahead of key domestic events, including the MPC decision and the Delhi elections.
(With inputs from agencies)
