Stock Market Opens Lower Ahead of RBI Policy Announcement

The stock market opened on a bearish note with key indices Sensex and Nifty down as investors await the Reserve Bank of India's monetary policy statement. Focus is on RBI Governor Shaktikanta Das's comments regarding inflation and GDP growth. Global markets also showed a downward trend.

The stock market opened on a bearish note today, with investors eagerly awaiting the Reserve Bank of India's (RBI) impending monetary policy announcement. The Sensex began the day 242.27 points lower, settling at 79,225.74, while the Nifty dropped 74.75 points, opening at 24,222.75.

Investor attention is squarely on RBI Governor Shaktikanta Das's upcoming comments about inflation and GDP growth. Analysts widely expect the central bank to keep the repo rate steady at 6.5 per cent for the ninth consecutive meeting. Among Nifty-listed companies, 12 advanced while 37 declined. Cipla, Tata Motors, ITC, Titan, and Dr. Reddy's emerged as top gainers, whereas Infosys, ONGC, JSW Steel, Shriram Finance, and Wipro recorded significant losses.

Market analysts like Ajay Bagga noted that the bearish sentiment is not restricted to Indian markets. "US markets ended lower on Wednesday, and Asian markets are also down on Thursday. The global risk-off sentiment persists, impacting market performance despite efforts from central banks like the Bank of Japan to bolster confidence.” In commodity markets, gold is priced at Rs 68,850 per 10 grams, down 1.82 per cent for the week, while silver stands at Rs 789.5 per 10 grams.

Data from August 7, 2024, show that foreign institutional investors (FIIs) sold shares worth Rs 3,314.76 crore, whereas domestic institutional investors (DIIs) bought shares totaling Rs 3,801.21 crore. Meanwhile, global crude oil prices saw modest gains, with WTI crude priced at USD 75.56 and Brent crude at USD 78.65. Asian indices continue to trade lower, with the Asia Dow down 0.24 per cent, Japan's Nikkei 225 falling 1.41 per cent, Hong Kong's Hang Seng dipping 0.76 per cent, and China's Shanghai Composite down 0.09 per cent.

In the U.S., the market closed on a lower note with the Nasdaq Composite falling 1.05 per cent to 16,195.85, the S&P 500 dropping 0.77 per cent to 5,199.50, and the Dow Jones Industrial Average falling 0.60 per cent to 38,763.45. As the day progresses, investors will closely monitor RBI Governor Shaktikanta Das's statements for direction on future monetary policy, particularly concerning inflation and economic growth projections.