Are Sensex and Nifty Gaining Ahead of RBI Repo Rate Decision?
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Synopsis
The Indian stock market opened positively today as investors are keenly anticipating the Reserve Bank of India's upcoming monetary policy decisions. With slight gains observed in both Sensex and Nifty, the focus remains on banking stocks. This article delves into market trends, key stock movements, and expert insights.
Key Takeaways
- Sensex gains 144 points, Nifty rises 17 points.
- Investors await RBI monetary policy decision.
- Focus on banking stocks due to potential NIM impacts.
- Systematic investment in large-cap stocks recommended.
- Market shows resilience despite foreign selling pressure.
Mumbai, Oct 1 (NationPress) The Indian benchmark indices commenced the day with slight upward movement on Wednesday, as investors keenly await the verdict of the Reserve Bank of India’s (RBI) monetary policy.
By 9:30 am, the Sensex had risen by 144 points, representing a 0.18% increase, reaching 80,412, while the Nifty moved up by 17 points, or 0.07%, to 24,628.
The broader indices, Nifty Midcap 100 and Nifty Smallcap 100, also saw gains of 0.52% and 0.29% respectively. Key gainers on the Nifty included Shriram Finance, Tech Mahindra, Trent, and Tata Consumer Products, whereas notable losers were Bajaj Finance, Interglobe Aviation, Bajaj Finserv, and SBI Life Insurance.
In sector performance, Nifty Media emerged as the top performer with a 1.74% increase, while Nifty Pharma and Nifty Realty also contributed positively with gains of 1.24% and 1.30% respectively.
Experts noted that banking stocks will be in sharp focus, as a rate cut at this point could influence their Net Interest Margins (NIMs) and stock valuations. They believe a pause by the MPC could bolster confidence in banking shares.
Despite ongoing market challenges driven by persistent selling from foreign institutional investors (FIIs), analysts are advocating for systematic investments in high-quality large-cap stocks, stressing that patience is crucial for long-term wealth accumulation.
Market analysts predict that the Nifty may find support at 24,550, followed by 24,500 and 24,450. On the upside, immediate resistance is expected at 24,650, with further levels at 24,700 and 24,750.
In overnight trading, US markets ended positively, with the Nasdaq rising 0.31%, the S&P 500 gaining 0.41%, and the Dow increasing by 0.18%.
Asian markets displayed mixed results in the morning session, following the gains on Wall Street, as investors appeared unfazed by the potential US government shutdown.
China's Shanghai index recorded a 0.52% increase, while Shenzhen rose by 0.35%. Japan's Nikkei fell by 1.17%, and Hong Kong's Hang Seng Index climbed by 0.81%. South Korea's Kospi rose by 0.60%.
On Tuesday, FIIs sold shares worth ₹2,327 crore, while domestic institutional investors (DIIs) were net purchasers of equities valued at ₹5,761 crore.
Point of View
The current market dynamics are influenced by both domestic and international factors. It's essential for investors to remain informed and strategic, especially amidst fluctuations driven by foreign institutional activity.
NationPress
01/10/2025
Frequently Asked Questions
What is the current status of the Sensex and Nifty?
As of now, the Sensex is up by 144 points, while the Nifty has gained 17 points.
How are banking stocks expected to react to the RBI's decision?
Analysts suggest that a rate cut may affect banking stocks' NIMs negatively, while a pause could provide stability.
What are some key stocks to watch today?
Key gainers include Shriram Finance, Tech Mahindra, and Tata Consumer Products, while Bajaj Finance and Interglobe Aviation are among the losers.
What are the predicted support and resistance levels for Nifty?
Support levels for Nifty are seen at 24,550, while immediate resistance is at 24,650.
What influence do foreign institutional investors have on the market?
FIIs' selling pressure has contributed to market weakness, but domestic institutional investors are stepping in as net buyers.
