Mumbai (Maharashtra) [India], February 6 : Indian stock markets opened on a positive note on Thursday, with investors maintaining a cautious stance ahead of the Reserve Bank of India's (RBI) interest rate decision.
The Nifty 50 index opened at 23,761.95, gaining 62 points, while the BSE Sensex surged over 200 points to start at 78,513.36.
Market experts believe that Indian markets are currently in a consolidation phase, with the upcoming rate cut decision expected to influence future movements.
"The market is moving into a consolidation phase on expectations of a pick up in growth in the coming quarters. In the near-term the market is likely to get a mild boost from a possible 25 bp rate cut by the MPC tomorrow. Even though steadily depreciating INR doesn't provide a favourable macro backdrop for a rate cut" said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services:
Meanwhile, investors are keeping an eye on third-quarter earnings results from major companies, including Bharti Airtel, State Bank of India, ITC, Trent, Britannia Industries, REC, Hero Motocorp, BSE Limited, and Aurobindo Pharma, which are set to announce their financial performance today.
Meanwhile, global markets are dealing with uncertainties as former U.S. President Donald Trump reintroduced elements of his tariff agenda, leading to trade tensions.
Ajay Bagga Banking and Market Expert told"Global markets exhibited a measured rebound mid-week, with steady gains across equities and bonds reflecting a temporary sense of calm after earlier volatility. The fluctuations were largely driven by renewed trade tensions as former U.S. President Donald Trump reintroduced elements of his tariff agenda, reigniting concerns about global trade dynamics".
In sectoral indices, Nifty Bank, Nifty Auto, and Nifty FMCG witnessed selling pressure and traded in the red, while IT, Media, and Pharma sectors showed gains at the time of reporting.
"The Nifty ended down yesterday but not without its share of volatility. That said, yesterday the market broke above the falling trendline drawn from the record high and the December peak, but did not see any upside follow through. With RBI policy coming tomorrow, today could be a rangebound outing with the market oscillating between support at 23528 and resistance at 23835" said Akshay Chinchalkar, Head of Research, Axis Securities.
On the global front, equity and bond markets showed a measured rebound mid-week, bringing a temporary sense of stability after previous volatility.
Asian markets also showed positive momentum. Japan's Nikkei 225 gained 0.17 per cent, Hang Seng rose by 0.5 per cent, Taiwan Weighted surged 0.33 per cent, and South Korea's KOSPI climbed 0.67 per cent.
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