Nifty, Sensex open cautiously ahead of RBI policy announcement, investors also tracking Putin's India visit

Mumbai (Maharashtra) [India], December 5 : The domestic equity market opened on a cautious note on Friday with a marginal dip as investors awaited the Reserve Bank of India's policy announcement and monitoring Russian President Vladimir Putin's visit to India, where he will be holding key meetings related to bilateral relations.

The Nifty 50 index opened at 25,999.80, registering a decline of -33.95 points or (-0.13 per cent), while the BSE Sensex opened at 85,125.48, down by -139.84 points or -0.16 per cent, indicating a muted start as the market participants remained watchful of the central bank's forward guidance.

Experts stated that the RBI Governor's statement is crucial today as it will not only reflect on the direction of interest rates but also provide insights into the sustainability of disinflation and economic growth.

Banking and Market Expert Ajay Bagga told ANI, "The market will be parsing the Governor's statement not just for the rate, but also for the forward guidance on the sustainability of disinflation and the RBI's comfort level with the current growth momentum. RBI will cut its inflation projection for Q4, FY2026 and for FY2027 by around 0.2 per cent. GDP growth number will be raised for FY2026 to 7 per cent."

He added, "Policy stance will stay neutral. RBI has reduced the policy rate by a cumulative 100 basis points (bps) since February this year. During this period, rates on outstanding loans declined 54 bps, while outstanding deposits fell 20 bps. Rates on fresh loans and deposits declined by 100 bps and 89 bps, respectively."

Across the broader market indices on the NSE, Nifty 100 was down by 0.13 per cent, while the Nifty Midcap opened almost flat but remained in green. The Nifty Smallcap index slipped into the red with a marginal dip, reflecting the overall cautious sentiment ahead of the policy announcement.

In sectoral performance, Nifty IT, Metal, Nifty Pharma and Healthcare indices opened in green with marginal gains, while pressure persisted in other major segments. Nifty Auto was down by 0.10 per cent, Nifty FMCG by 0.11 per cent, Nifty Private Bank by 0.26 per cent and Nifty Consumer Durables by 0.33 per cent.

Ponmudi R, CEO of Enrich Money, said, "GIFT Nifty signals a flat opening as investors await the outcome of the three-day RBI monetary policy review today. While persistent weakness in the Indian rupee has accelerated FPI outflows in recent sessions. Nifty is expected to remain range-bound between 25,900 and 26,100, with the last two sessions closing above the rising trendline support, confirming 25,900 as the key demand base."

He added that the index continues to trade within a rising wedge pattern, indicating a controlled uptrend with pressure building inside the pattern boundary.

Russian President Vladimir Putin landed in Delhi on Thursday evening for a two-day State visit to India. During his visit, President Putin will hold the 23rd India-Russia Annual Summit with Prime Minister Narendra Modi in Delhi on December 5.

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