RBI MPC decision today: Will Sensex, Nifty open higher on likely rate-cut?
Sensex and Nifty are projected to open on a positive note on Friday, in anticipation of the Reserve Bank of India's (RBI) policy announcement. Analysts predict a rate cut, which could stimulate market activity.Gift Nifty futures were trading at 24,849.50 as of 8:30 am, indicating that Nifty50 will open above Thursday's close of 24,750.90. This optimism is fuelled by expectations that a rate cut will boost liquidity and investor sentiment, potentially leading to a rally in the stock market.advertisementVLA Ambala, Co-Founder of Stock Market Today, said that we can expect Nifty to gain support between 24,540 and 24,430 and meet resistance near 24,920, 25,000, and 25,150 in the next intraday trading session.
"Nifty is also expected to trade within a wide range today," she added. Pranay Aggarwal, Director and CEO of Stoxkart, said, "Soft inflation data and moderate demand trends give the RBI room to act. However, global uncertainties, including US policy and external trade dynamics, could influence the tone of the policy statement."The GDP growth for the fourth quarter was 7.4%, with a gross value added figure of 6.8%, which HSBC suggests better reflects the economy's state. These economic indicators provide a mixed backdrop for the RBI's decision-making process.On Thursday, Nifty and Sensex rose about 0.5%, led by gains in rate-sensitive sectors like realty and financials. Despite this, the benchmarks are approximately 6% below the record highs achieved in late September 2024.advertisementOther Asian markets opened with minimal change, while Wall Street equities closed lower due to tensions involving U.S. President Donald Trump and Elon Musk. The international landscape adds an element of unpredictability to the markets, which could sway investor behavior."Today, the RBI's policy announcement could act as a major trigger, as anticipated rate cuts will likely increase market liquidity. In the session leading up to the announcement, we can expect financial and consumer stocks to remain in focus," explained Ambala.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)Must Watch
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