Mumbai, Sep 29 The Indian equity indices opened higher on Monday with a rise in heavyweight stocks, as the key RBI MPC meeting began to decide on the repo rate.
At 9.22 am, Sensex was up 108 points or 0.14 per cent at 80,534 and Nifty was up 30 points or 0.12 per cent at 24,685.
Buying was seen in the midcap and smallcap stocks. Nifty midcap 100 index was up 302 points or 0.54 per cent at 56,680 and Nifty smallcap 100 index was up 90 points or 0.51 per cent at 17,651.
Among the sectoral indices Auto, IT, PSU bank, pharma, metal, realty and energy were major gainers. FMCG and private bank were major losers.
In the Sensex pack, BEL, Eternal, Titan, Tata Steel, Trent, M&M, Tata Motors, Infosys, Sun Pharma, TCS, SBI and Power Grid were major gainers. HUL, Axis Bank, L&T, Maruti Suzuki, Bharti Airtel, ITC and HCL Tech were major losers.
The three-day Reserve Bank of India’s Monetary Policy Committee (MPC) meeting began on Monday, and was widely expected to hold its key policy rate at 5.50 per cent.
According to analysts, the monetary policy expected on October 1 is unlikely to surprise.
The present growth-inflation dynamics do not warrant a rate cut. Therefore, the RBI is likely to hold rates while sending a dovish message to support the growth momentum in the economy, they added.
Also, the weakness in the broader market is likely to sustain given the valuations which continue to remain elevated. Investors can slowly accumulate largecaps in automobiles, banking, telecom, capital goods and cement.
“Weakness in pharmaceuticals is an opportunity to buy into the segment since India’s generic exports will not be impacted by Trump’s tariffs on patented and branded medicines," they added.
Meanwhile, foreign institutional investors (FIIs) extended their selling streak for the fifth consecutive session on September 26, offloading equities worth Rs 5,687 crore. Domestic institutional investors (DIIs), on the other hand, absorbed the selling pressure, purchasing equities worth Rs 5,843 crore on the same day.
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