Sensex Closes Steady at 81,709 Following RBI MPC Announcements
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Mumbai, Dec 6 (NationPress) The Indian stock market wrapped up trading on a flat note on Friday post the announcement of the RBI's Monetary Policy Committee (MPC) decisions regarding repo and CRR rates. Selling pressure was noted in the IT, financial services, and pharma sectors, while the auto and metal stocks saw some buying activity.
At the end of the trading session, the Sensex closed at 81,709.12, reflecting a decrease of 56.74 points, or 0.07 percent, while the Nifty concluded at 24,677.80, down by 30.60 points, or 0.12 percent.
The results from the RBI's MPC meeting indicated that the repo rate was maintained, but a significant 50 basis point reduction in the CRR was highlighted.
By keeping the repo rate steady at 6.5 percent and implementing a 50 bps CRR cut to 4 percent, the central bank has injected Rs 1.16 lakh crore into the banking sector.
The Nifty Bank index closed at 53,509.50, down by 94.05 points or 0.18 percent. Meanwhile, the Nifty Midcap 100 index finished at 58,704.60, gaining 263.05 points or 0.45 percent.
The Nifty Smallcap 100 index closed at 19,492.10, having increased by 158.55 points or 0.82 percent.
Within the Sensex group, Bharti Airtel, Asian Paints, IndusInd Bank, Bajaj Finserv, Reliance, Infosys, and UltraTech Cement were the main losers, while Tata Motors, Axis Bank, Maruti, L&T, and ITC emerged as top gainers.
According to Krishna Appala from Capitalmind Research, the broader markets have shown a significant recovery this week, with the Nifty 50 rising by 3.2 percent, while the Midcap and Smallcap indices increased by 3.5 percent and 3.3 percent, respectively.
Furthermore, FIIs have indicated a gradual return, with data from the first week of December showing a net inflow of approximately Rs 14,000 crore into the cash market. This serves as a welcome change after the heavy selling observed in November,” Appala noted.
Vipul Bhowar, Senior Director-Listed Investments at Waterfield Advisors, stated that the RBI’s decision regarding the repo rate illustrates a careful balancing act aimed at managing inflation while promoting economic growth amidst challenging conditions and an uncertain global economic landscape.
