The domestic stock market opened with strong gains on Wednesday. The market saw a rise in early trade on the back of falling crude oil prices and continued buying by foreign investors. Investors are also keeping an eye on the decision of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC).
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 5.25%. Following this RBI decision, the domestic stock market witnessed a positive sentiment. The decline in crude oil prices, buying by foreign investors, and the central bank’s balanced stance boosted investor confidence.
Market Status in Early Trading
The BSE Sensex gained 397.59 points to 78,826.54. The NSE Nifty rose 62.70 points to 24,677.60. Shares of InterGlobe Aviation, Mahindra & Mahindra, Trent, NTPC, Larsen & Toubro (L&T), and Bajaj Finserv saw strong buying. Shares of Sun Pharma, Tata Consultancy Services (TCS), Titan, and Bharat Electronics remained in the red in early trade.
What did Governor Sanjay Malhotra say?
RBI Governor Sanjay Malhotra stated that India’s economy remains strong despite ongoing global uncertainties in several regions, including West Asia. He stated that foreign direct investment (FDI), foreign portfolio investment (FPI), and credit flows into the banking system are in good shape, helping the Indian economy face global challenges.
The RBI also stated that the country’s foreign exchange reserves are strong, sufficient to cover approximately 10 months of imports and 91% of external debt. The central bank clarified that it will continue to monitor unnecessary fluctuations in the foreign exchange market and intervene if necessary.
Asian markets also provided support
South Korea’s Kospi rose nearly 4%. Japan’s Nikkei 225 gained nearly 3%. China’s SSE Composite and Hong Kong’s Hang Seng also traded with gains. US stock markets also closed with gains on Tuesday.
Crude Oil Decline
Brent crude futures fell 1.16% to $78.44 per barrel in the international market, providing positive support to market sentiment. According to stock market data, foreign institutional investors (FIIs) made net purchases of shares worth ₹2,446.47 crore on Tuesday. The market is now eyeing the decision of the RBI’s Monetary Policy Committee (MPC), which is expected to determine the future direction.