Mumbai, Feb 6 The stock market was trading almost flat early on Thursday, as investors wait for the outcome of the RBI’s monetary policy committee (MPC) meeting, which is slated for Friday.
At 9.36 a.m., the Sensex was at 78,164.89, down 106.39 points or 0.14 per cent and the Nifty was down 34 points or 0.15 per cent at 23,662.10.
According to experts, after a positive opening, Nifty can find support at 23,600 followed by 23,500 and 23,400.
“On the higher side, 23,800 can be an immediate resistance, followed by 23,900 and 24,000," said Hardik Matalia, Derivative Analyst at Choice Broking.
Infosys, Bajaj Finance and Tata Consultancy Services added to the Nifty 50 index, while Mahindra and Mahindra, ITC, Bharti Airtel and HDFC Bank weighed on the Nifty 50 index.
On the NSE, most sectors were in the green while Nifty auto and Nifty FMCG dragged.
Online food delivery platform Swiggy saw its stock declining in early trade after posting dismal Q3 results.
Investors are now betting on a 25bps rate cut at the Central Bank’s MPC to ease policy for the first time in nearly five years to spur growth.
The likely move is to align with the Budget's objectives of stimulating economic activity while managing a prudent fiscal position, which provides comfort on currency and inflation fronts.
Given the Union Budget's emphasis on reviving consumption to support economic growth, the RBI might consider turning the policy rate cycle.
Meanwhile, the foreign institutional investors (FIIs) turned net sellers on February 5, as they sold equities worth Rs 1,682.83 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 996.28 crore.
Sameet Chavan, Head Research, Technical and Derivative, Angel One, said that traders prefer to book some of their long positions, given the upcoming domestic events, including the MPC outcome and Delhi state election results.
Additionally, global factors such as the ongoing trade war continue to add an element of uncertainty, he added.
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