Indian Stock Markets Open Flat Amid Global Cues and RBI's Policy Anticipation

Indian stock markets opened flat on Friday amidst mixed global signals and upcoming RBI policy announcements. While some sectors gained, others remained in the red. The key focus is on the RBI's policy meeting today, which could influence market trends alongside U.S. economic developments.

On Friday, Indian stock markets showed a muted opening amid a mix of global trends and the anticipation of the Reserve Bank of India's (RBI) policy outcomes. The Nifty 50 on the National Stock Exchange (NSE) started slightly in negative territory at 24,729.45, down over 12 points, whereas the BSE Sensex edged up by approximately 100 points to 81,887.54.

In the initial trading session at the NSE, Bajaj Auto, Eicher Motor, Trent, ITC, and Hero Motocorp emerged as key gainers, while TCS, Wipro, LT, Tata Motors, and Ultra Cement were among the notable decliners. Sector-wise, indices such as Bank, IT, Media, Realty, and midsmall healthcare began in red, leaving others to rise. At the time of this report, 27 stocks in the Nifty 50 list showed gains, while 23 suffered losses.

Market participants are eagerly awaiting the verdict of the Monetary Policy Committee of the RBI slated for later in the day, which is expected to provide significant market cues. The Indian stock markets have been on a five-day upward trajectory bolstered by foreign institutional investor (FII) buying and robust U.S. market performance.

Ajay Bagga, a market and banking expert, remarked on the market's early Christmas cheer, noting the dual influences of the RBI's MPC meeting and the evening release of U.S. payroll data. The return of foreign portfolio investors (FPIs) to Indian markets has gained traction this week, potentially continuing into the Union Budget unveiling on February 1. Bagga emphasized the scope for India to attract FPI inflows provided there is consistent earnings growth.

Technical analysis by Akshay Chinchalkar, the Head of Research at Axis Securities, pinpointed resistance between 24,800 and 24,850, with a possible peak at 24,965. A crucial support level appears near 24,360, a point previously considered critical resistance. Chinchalkar noted historical trends, stating that in the last two decades, the Nifty has advanced during this time 75% of the time, with average and median returns of 1.7% and 2.4% correspondingly.

Market experts underscored the significance of the ongoing MPC meeting in Mumbai, though chances of a rate cut remain slim. Should the RBI alter its policy amidst an economic slowdown, markets are likely to react. Meanwhile, Asian markets displayed a mixed performance, echoing setbacks on Wall Street where U.S. markets closed lower, with the Dow Jones losing 248.33 points (-0.55%). OPEC nations, including Saudi Arabia and Russia, have agreed to prolong their oil supply cuts until March 2025.

(With inputs from agencies.)