Indian stock markets kicked off Wednesday with small gains, as traders keep a close eye on the Reserve Bank of India’s (RBI) upcoming monetary policy decision. Investors hope for clues on interest rates that could shake up the economy and banking sector.
By 9:30 a.m., the Sensex climbed 144 points, or 0.18%, to 80,412. The Nifty also edged higher by 17 points, or 0.07%, reaching 24,628. Midcap and smallcap indices showed more pep, with the Nifty Midcap 100 up 0.52% and the Nifty Smallcap 100 rising 0.29%.
Top performers on the Nifty included Shriram Finance, Tech Mahindra, Trent, and Tata Consumer Products. On the flip side, Bajaj Finance, Interglobe Aviation, Bajaj Finserv, and SBI Life Insurance saw dips.
Sector-wise, media stocks stole the show, with Nifty Media jumping 1.74%. Pharma followed at 1.24% higher, and realty gained 1.30%. Analysts point out that banking stocks will draw the most attention today. A potential rate cut could squeeze banks’ net interest margins (NIMs) and drag their share prices down. But if the RBI’s Monetary Policy Committee (MPC) holds steady, it might give banking stocks a boost and add stability.
Despite ongoing pressure from foreign institutional investors (FIIs) selling off shares, experts urge patience. They recommend steady investments in top-quality large-cap stocks to build long-term wealth in the Indian stock market.
For the Nifty, key support levels sit at 24,550, then 24,500 and 24,450. On the upside, watch resistance at 24,650, followed by 24,700 and 24,750.
Overnight, U.S. markets closed strong. The Nasdaq rose 0.31%, the S&P 500 added 0.41%, and the Dow gained 0.18%. Asian markets traded mixed this morning, shrugging off worries about a possible U.S. government shutdown. China’s Shanghai index climbed 0.52%, Shenzhen up 0.35%, Hong Kong’s Hang Seng rose 0.81%, and South Korea’s Kospi gained 0.60%. Japan’s Nikkei, however, fell 1.17%.
On Tuesday, FIIs offloaded equities worth Rs 2,327 crore, while domestic institutional investors (DIIs) snapped up shares for Rs 5,761 crore, providing some balance to the Indian stock market flows.
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