Indian markets trade higher ahead of RBI policy decision
New Delhi, June 5
Indian equity markets traded higher in the morning session on Friday ahead of a key central bank policy decision as investors awaited cues on how the central bank plans to address inflation and currency pressures amid elevated energy prices driven by geopolitical tensions in West Asia.
Sensex jumped as much as 0.48 per cent or 357 points to 74,717.57, hitting an intraday high in early trade. Similarly, Nifty was trading 0.42 per cent or 100 points higher at 23,516.
Sector-wise, among the major gainers, the Nifty Media index jumped 1.81 per cent, followed by the Nifty Financial Services index, which rose 0.97 per cent.
In addition, healthcare-related indices remained strong, with Nifty Healthcare and Nifty Pharma gaining up to 0.82 per cent, while Nifty Realty added 0.71 per cent.
On the other hand, Nifty Oil & Gas slipped marginally by 0.06 per cent, while Nifty Metal declined 0.60 per cent. IT and FMCG stocks were largely steady, while PSU banks and private banks posted marginal gains.
Among individual stocks, Wipro, Tata Steel, Trent, Hindalco Industries and Coal India were among the top losers on the Nifty index.
Analysts said there were mild positive indications for the market. "There are signs of weakness in the AI trade in the US, South Korea and Taiwan and rotation away from tech stocks, but it is too early to say whether this will sustain," they said.
If the Reserve Bank of India decides to act with a 25 bps rate hike, banking stocks could see sharp gains as lenders benefit from higher interest rates, experts said.
However, they added that a rate hike would be negative for interest-sensitive segments such as automobiles and real estate.
Crude oil prices traded higher, with international benchmark Brent crude rising 0.88 per cent to $95.87, while US WTI gained 0.53 per cent to $93.54.
Asian markets traded lower, with Japan's Nikkei down over 1 per cent, South Korea's KOSPI plunging 5 per cent, and Hong Kong's Hang Seng down about 1 per cent.
— IANS
Reader Comments
I'm seeing a lot of volatility across global markets. South Korea down 5%? That's scary. India holding up well so far, but if crude keeps rising, our import bill will hurt. Let's see what RBI does today.
Nifty Media up 1.8% is interesting, but why? No major news there. Financials gaining on rate hike expectations makes sense. Hope RBI doesn't shock everyone with a hike—auto and realty will take a hit. Already seeing sales slow down in my city.
As a retail investor, I'm just praying RBI keeps rates steady. My auto loan EMIs are already high, and real estate is overpriced. If they hike, it's going to hurt the common man. The government needs to focus on controlling fuel prices too.
I'm watching Wipro and Tata Steel fall. IT stocks are struggling globally due to the AI trade rotation. India's IT sector might face headwinds. But the domestic story remains strong—financials and pharma should do well.
Honestly, the market is too jittery. One day up, next day down. Crude at $95 will hit our pockets anyway. RBI must think long-term. Also, why is Nifty Metal down? Global slowdown fears? 🤔
A We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.