Stock Market Remains Steady Ahead of RBI's Key Rate Cut Decision
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Synopsis
On February 7, the NSE Nifty 50 and BSE Sensex remained stable as investors await the RBI's MPC meeting to determine the benchmark repo rate. The market shows cautious optimism while traders adjust their positions ahead of potential volatility due to upcoming decisions.
Key Takeaways
- NSE Nifty 50 and BSE Sensex trading flat.
- Awaiting RBI MPC meeting for repo rate decision.
- Optimistic market sentiment indicated by GIFT Nifty.
- Traders taking cautious approach ahead of elections.
- FIIs sold Rs 3,549.95 crore in equities.
Mumbai, Feb 7 (NationPress) The NSE Nifty 50 and BSE Sensex exhibited a nearly flat performance early Friday as investors await the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting to unveil its decision regarding India's benchmark repo rate.
At 9:35 a.m., the Sensex stood at 78,033.41, reflecting a decline of 18 points or 0.024 percent. Meanwhile, the Nifty was recorded at 23,598.25, down by 5.10 points or 0.022 percent.
Prior to market opening, the NSE Nifty 50 showed an increase of 46.15 points or 0.20 percent, reaching 23,649.50, while the BSE Sensex was up 0.08 percent at 78,119.60.
Contributions to the Nifty 50 index came from Bharti Airtel, HDFC Bank, Mahindra & Mahindra, Britannia Industries, and UltraTech Cement.
Analysts suggest that the market sentiment remains largely optimistic, as indicated by the GIFT Nifty, signaling a positive outlook for the benchmarks.
“We believe the market has already factored in the impact of a 25 bps rate cut during the previous sessions this week, therefore, any deviation from expectations and commentary from the governor will be crucial for assessing market momentum,” stated Ameya Ranadive, senior technical analyst at StoxBox.
In his inaugural monetary policy review, RBI Governor Sanjay Malhotra is anticipated to lower rates to stimulate economic growth. The RBI utilizes the repo rate as a monetary policy tool to manage liquidity in the economy.
Traders are adopting a cautious strategy, choosing to secure some long positions around this critical level in anticipation of both the RBI policy decision and the Delhi state election results, both of which could lead to increased volatility.
On February 6, foreign institutional investors (FIIs) offloaded equities valued at Rs 3,549.95 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 2,721.66 crore.
