📷 Image Credits: Mint
The Indian stock market is gearing up for a positive start as the domestic equity indices, Sensex and Nifty 50, are expected to open higher following mixed global cues. The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to announce its decision on the repo rate, with expectations of keeping it unchanged at 6.5% for the eighth consecutive time. The RBI’s stance of ‘withdrawal of accommodation’ is also anticipated to be maintained.
Investors are keenly watching for RBI Governor Shaktikanta Das’s commentary on inflation and future interest rate cuts, which will be crucial for market sentiments. The market closed higher previously, driven by the Lok Sabha election 2024 results and hopes of political stability and policy continuity.
The US stock market ended mixed, with technology and industrial stocks pulling in opposite directions. Asian markets are trading with a similar sentiment, while the European Central Bank (ECB) made its first interest rate cut since 2019. ECB President Christine Lagarde led the decision to lower the key deposit rate by 25 basis points to 3.75%.
Additionally, the number of Americans filing new claims for unemployment benefits increased, and Japanese household spending showed positive growth. Oil prices remained above $80 a barrel, indicating stability in the global market.
Overall, with key global and domestic events influencing market movements, investors are advised to stay cautious and monitor the developments closely. The RBI monetary policy outcome and global cues are expected to set the tone for the Indian stock market’s performance in the days ahead.