Nifty, Sensex Open Flat as RBI Faces Inflation and Growth Challenge

Indian stock markets keep climbing as selling pressure diminishes and foreign investors increase their investments in the nation.

The Nifty 50 index opened at 24,539.15 points, gaining 71.70 points or 0.29 percent, whereas the BSE Sensex commenced at 81,182.74 points, climbing by 226.41 points or 0.28 percent.

Specialists observed that as the MPC meeting is ongoing in Mumbai, the markets are paying close attention. Nonetheless, the likelihood of a rate cut is minimal. Should the RBI alter its position in light of a faltering economy, the markets are expected to respond.

Ajay Bagga, Banking and Market Expert told ANI "The current RBI MPC must tackle the challenge of rising inflation while the economy slows down. By maintaining high real interest rates over an extended period, the RBI has diminished aggregate demand. However, since monetary policy is a broad tool affecting the entire system, urban demand has decreased more than expected. Coupled with reduced government spending due to the four lost months from mid-March to the end of July, this has resulted in a slowing economy.”

At the time of this report, 23 stocks in the Nifty 50 opened with gains, 26 stocks saw declines, and 1 remained unchanged. Among the sectoral indices on the NSE, Nifty FMCG, Nifty IT, Nifty Consumer Durables, and Nifty Oil & Gas posted gains, while the remaining indices registered losses. On Thursday, foreign investors purchased equities worth Rs 1,797 crore.

"In a shot-in-the-arm for bulls, a key Ichimoku signal has turned positive, and with 24550 breaking during yesterday's session, the onus is now on the market to hold short-term support in the 24240 - 24300 area and make a dash toward 24800. Below 24240, this view will have to be relooked at" said Akshay Chinchalkar, Head of Research, Axis Securities.

In other Asian markets, Japan's Nikkei 225 index rose by 0.54 percent, Taiwan's Weighted index increased by 0.36 percent, whereas Hong Kong's Hang Seng index fell by 1.14 percent. South Korea's KOSPI index remained nearly unchanged at the time of this report.

In the US markets, both indices continued their upward trajectory, with the S&P 500 climbing by 0.61 percent and the Nasdaq index advancing by 1.29 percent.