Stock markets are anticipated to open without much change on Friday, with the focus squarely on the RBI meeting outcome regarding interest rates. The newly appointed Governor, Sanjay Malhotra, is set to reveal the committee’s decision at 10:00 a.m.
Traders are taking a cautious approach, opting to secure some long positions around this crucial level before the RBI policy decision and the results of the Delhi state election, both of which could stir up volatility, according to Rajesh Bhosale, a Technical Analyst at Angel One Ltd.
Dhiraj Relli, MD & CEO of HDFC Securities, mentioned that a 25 basis points cut in the repo rate by the Reserve Bank of India (RBI) is widely expected at the upcoming Monetary Policy Committee (MPC) meeting led by Governor Malhotra. However, the decision remains finely balanced as the central bank may prioritize liquidity measures and delay the rate cut to the April policy review, given the increasing global uncertainties.
The Gift Nifty at 23,705 indicates a flat opening with a slight upward bias.
Dr. Joseph Thomas, Head of Research at Emkay Wealth Management, shared insights on the stability of the Rupee around its current levels, suggesting that the currency’s depreciation may have already plateaued. He also mentioned the potential impact of the recent budget announcement on consumption and investment, as well as the narrowing of interest rate differentials between the US and India and potential dollar inflows into the country.
On a global scale, the Bank of England has implemented another 25 basis points interest rate cut. In the Asia-Pacific region, stock markets are displaying a mixed performance, with major economies like Japan and China experiencing moderate declines.
Overall, market watchers are closely monitoring the RBI’s policy decision and other economic indicators to gauge the potential impact on the financial landscape.
Published on February 7, 2025.
