Did Sensex and Nifty Close Higher Before RBI MPC Announcement?
Click to start listening
Synopsis
As investors look ahead to the RBI's upcoming MPC announcement, the Indian stock market has closed in the green, with both Sensex and Nifty showing notable gains. Experts predict a potential repo rate cut, which could further influence market dynamics.
Key Takeaways
- The Indian stock market closed in the green amid anticipation of RBI's MPC decision.
- Sensex and Nifty recorded significant gains before the announcement.
- Experts predict a potential repo rate cut by the RBI, influencing market sentiment.
- Midcap and smallcap indices also saw positive movement.
- A golden crossover on the daily chart indicates a potential uptrend.
Mumbai, June 5 (NationPress) The Indian stock market closed higher on Thursday as investors awaited the crucial RBI monetary policy committee (MPC) decision regarding the repo rate.
By the end of trading, the Sensex had risen by 443.79 points or 0.55 percent, reaching 81,442.04, while the Nifty saw an increase of 130.70 points or 0.53 percent, finishing at 24,750.90.
The MPC decisions will be revealed on Friday by RBI Governor Sanjay Malhotra, and analysts anticipate a potential 0.25 percent cut in the repo rate.
In addition to large-cap stocks, midcap and smallcap stocks also experienced gains. The Nifty Midcap 100 index increased by 378.35 points, or 0.65 percent, closing at 58,303, while the Nifty Smallcap 100 index climbed 175.50 points, or 0.96 percent, to 18,432.60.
Sector-wise, IT, financial services, pharma, FMCG, metals, realty, and energy sectors ended on a positive note, whereas auto, PSU banks, media, and private banks witnessed declines.
Sundar Kewat from Ashika Institutional Equity noted that the Nifty traded within a volatile range, as market participants displayed caution ahead of the RBI’s monetary policy decision.
Declining US treasury yields and a weakening US dollar provided support to Indian equities, although global sentiment remains cautious amid ongoing US-China trade tensions.
Analysts have observed a golden crossover on the daily chart, suggesting the potential for a strong uptrend in the near future.
“Support remains intact at 24,500; unless the Nifty falls below this level, a substantial correction is unlikely. Conversely, a steady or sharp recovery seems plausible in the short term,” stated Rupak De from LKP Securities.
The Indian rupee appreciated, fueled by a resurgence in risk sentiment and inflows from foreign funds. The currency also gained from the overall strength seen in other regional currencies.
“Looking forward, market participants are anticipating another interest rate cut from the RBI, supported by stable inflation figures. The future movement of the rupee will largely depend on the RBI's forthcoming policy direction and any liquidity measures introduced,” remarked Dilip Parmar from HDFC Securities.
Point of View
The Indian stock market's upward movement ahead of the RBI's MPC decision showcases investor optimism. However, caution remains essential as geopolitical tensions and economic policies continue to shape market dynamics. Our commitment is to keep you informed and prepared for the evolving financial landscape.
NationPress
07/06/2025
Frequently Asked Questions
What was the closing point of Sensex?
The **Sensex** closed at **81,442.04**, up by **443.79 points** or **0.55 percent**.
What do analysts expect from the RBI MPC meeting?
Experts anticipate a potential **0.25 percent cut** in the **repo rate** during the upcoming **RBI MPC meeting**.
How did the midcap and smallcap indices perform?
The **Nifty Midcap 100 index** rose by **378.35 points** or **0.65 percent**, while the **Nifty Smallcap 100 index** increased by **175.50 points** or **0.96 percent**.
What sectors saw gains today?
Sectors such as **IT, financial services, pharma, FMCG, metals, realty,** and **energy** ended positively.
What influenced the rupee's appreciation?
The **rupee** appreciated due to a rebound in **risk sentiment** and inflows from foreign investors, along with strength observed in **regional currencies**.
