Stock Market Trades Nearly Flat Amid RBI's Rate Cut Possibility
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.
Experts feel that 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 were among the Nifty 50 index contributors. Mahindra and Mahindra, ITC, Bharti Airtel and HDFC Bank were among the Nifty 50 index laggards.
On the NSE, most sectors were in the green while Nifty auto and Nifty FMCG dragged.
Swiggy, an online food delivery platform, saw its stock declining in early trade after reporting 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.
More likely, is to turn in line with the Budget objectives of stimulating economic activity while managing a prudent fiscal position that delivers comfort on both currency and inflation fronts.
With the Union Budget throwing much emphasis on reviving consumption to support economic growth, the RBI may consider turning the policy rate cycle.
Meanwhile, FIIs turned net sellers on February 5, as they sold equities worth Rs 1,682.83 crore, whereas DIIs purchased equities worth Rs 996.28 crore.
Sameet Chavan, Head Research, Technical and Derivative, Angel One, said that traders like to book some of their long positions, especially with the events lined up domestically, including MPC outcome and Delhi state election results.
That, apart from global factors, including an ongoing trade war that adds some degree of uncertainty, added his sentiments.
