Stock market ends in green amid positive global cues as RBI MPC begins
Mumbai: Domestic benchmark indices closed in the green on Wednesday due to favourable global cues such as strong US job data, as the ongoing RBI Monetary Policy Committee (MPC) meeting added a layer of speculation about a potential rate cut.
Sensex ended 260.74 points or 0.32 per cent up at 80,998.25 while Nifty closed 77.70 points or 0.32 per cent high at 24,620.20.
Midcap and smallcap performed better than largecap. Nifty Midcap 100 index was up 407.55 points or 0.71 per cent at 57,924.65 and Nifty Smallcap 100 index rose 142.95 points or 0.79 per cent at 18,257.10.
On a sectoral basis, auto, IT, PSU bank, financial services, pharma, FMCG, metal, media, energy and private indices closed in the green, and only the realty index closed in the red.
Rupak De from LKP Securities said the Nifty continues to exhibit a lacklustre sentiment as traders await the RBI rate decision.
The market is likely to remain sideways for another session until the RBI announcement and follow-up commentary on Friday.
'Immediate support is placed at 24,500; a break below this level could lead to further weakness. On the higher side, resistance is seen at 24,750/24,900,' De added.
Vikram Kasat, Head-Advisory, PL Capital, said that markets opened firmly as benchmark indices inched higher amid global tailwinds and anticipation around RBI's policy stance.
'The ongoing RBI Monetary Policy Committee meeting added a layer of speculation, especially with market participants divided over the extent of a potential rate cut. Meanwhile, upbeat US labour data lent support to global equities,' he noted.
With the Nifty holding above 24,500, near-term sentiment remains constructive. However, clarity from the RBI and global macro developments will shape the next leg of the rally.
Meanwhile, rupee traded weak by 25 paise at 85.87, inching closer to the 86.00 mark, as foreign investors remained in sell mode ahead of the RBI policy announcement. The rupee is seen trading in a range of 85.50 to 86.40, said analysts.
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