Mumbai:The domestic benchmark indices opened flat on Friday ahead of the key RBI monetary policy committee (MPC) decision on the repo rate, as buying was seen in the IT and PSU bank sectors in the early trade. In today’s monetary policy, the RBI is likely to cut policy rates by 25 bps, which has already been factored in by the stock market.
At around 9.23 am, Sensex was trading 82.43 points or 0.10 per cent down at 81,359.61 while the Nifty declined 7.70 point or 0.03 per cent at 24,743.20 Nifty Bank was up 4.85 points or 0.01 per cent at 55,765.70.
The Nifty Midcap 100 index was trading at 58,449.25 after rising 146.25 points or 0.25 per cent. Nifty Smallcap 100 index was at 18,498.10 after climbing 65.50 points or 0.36 per cent.
According to analysts, more important will be the RBI commentary on growth and inflation projections for FY26. “If the inflation forecast is cut from 4 per cent, the market would respond positively," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
According to analysts, Nifty is likely to find immediate support at 24,500, followed by 24,400 and 24,300. On the upside, resistance is expected at 24,850, then 24,900, and finally the psychological mark of 25,000. "A breach below 24,500 could trigger further selling pressure, while a breakout above 25,000 may open up room for fresh highs," said Mandar Bhojane, Equity Research Analyst of Choice Broking. India VIX declined by 4.21 per cent to 15.08, suggesting that the market is pricing in lower volatility in the near term.
However, with the RBI policy due, traders should remain cautious as volatility may spike depending on the central bank’s tone and rate outlook, he added. Meanwhile, in the Sensex pack, Bajaj Finserv, Tata Steel, IndusInd Bank, Eternal, ITC, NTPC and Titan were the top gainers. Whereas, Tata Motors, Bajaj Finance, ICICI Bank, HDFC Bank and SBI were the top losers.
In the Asian markets, Hong Kong, China and Bangkok were trading in red. Whereas Only Japan was trading in green. In the last trading session, Dow Jones in the US closed at 42,319.74, down 108 points, or 0.25 per cent.
The S&P 500 ended with a loss of 31.51 points, or 0.53 per cent, at 5,939.30 and the Nasdaq closed at 19,298.45, down 162.04 points, or 0.83 per cent. In terms of institutional activity, foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 208.47 crore on June 5.
In contrast, domestic institutional investors (DIIs) remained strong buyers with net purchases worth Rs 2,382.40 crore, which provided support to the market.
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