Mumbai, Aug 6 The Indian equity benchmarks opened flat on Wednesday, ahead of the Reserve Bank of India (RBI) Monetary Policy Committee’s decision. Sensex gained 64 points or 0.08 per cent at 80,774 while Nifty edged up 16 points or 0.07 per cent to 24,665.
Broad cap indices saw higher selling pressure. The Nifty midcap 100 index was down 0.54 per cent and Nifty smallcap 100 index slipped 0.64 per cent.
“Today’s monetary policy decision is unlikely to influence the market significantly. The overarching influence on the market will be US Donald Trump’s tantrums,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Among the sectoral indices, the Nifty IT index was the major loser, declining 0.92 per cent. Nifty FMCG lost 0.26 per cent and Nifty Realty declined 0.82 per cent. The Nifty Bank advanced 0.13 per cent.
In the Nifty pack, Bharti Airtel led the gainers, followed by Kotak Mahindra Bank, SBI Life Insurance, Shriram Finance, and Trent. Coal India was the major laggard, down 1.41 per cent. Dr. Reddy’s Laboratories, Cipla, Hero MotoCorp, and Grasim Industries were the other major losers.
“US President Donald Trump’s rhetoric and actions will continue to weigh on markets in the near-term. India’s response to the rhetoric and actions, so far, has been measured. India is unlikely to concede to the unreasonable demands of the US administration, which could bring short-term pains for the economy in terms of lower exports and a marginal hit to our GDP growth. The GDP growth and corporate earnings may also take a minor hit. This could mean headwinds for the market in short term since the high valuations provide room for correction,” Vijayakumar said.
Strong domestic economic data and optimism ahead of the RBI’s credit policy meeting of a 25 bps rate cut could provide an upside to the market, according to experts.
“Technically, immediate support for the Nifty is placed around 24,500, with a stronger support zone near 24,400. A breakdown below these levels could lead to extended selling. On the upside, resistance is seen at 24,800, with a major hurdle near 25,000. A decisive move above 25,000 is essential for any potential trend reversal and fresh buying momentum,” said Hardik Matalia from Choice Broking.
US markets ended lower overnight, as the Dow Jones slipped 0.14 per cent, the Nasdaq Composite declined 0.65 per cent, and the S&P 500 shed 0.49 per cent.
In Asia, markets traded mixed. Japan’s Nikkei 225 advanced 0.62 per cent. Markets in China and Hong Kong were in the green zone. South Korea’s Kospi, however, edged lower by 0.21 per cent.
On Tuesday, foreign portfolio investors (FPIs) were net sellers to the tune of Rs 22 crore worth of Indian equities, while domestic institutional investors (DIIs) net bought Rs 3,840 crore worth of shares.
(Auto generated news from IANS Feed. This has not been edited by enewstime desk)
