Markets take a breather before RBI policy announcement

After a flat opening Nifty traded volatile on the weekly expiry and ended the session at 20,901.15 levels.

On the other hand Bank Nifty took support near 46,500 and managed to close in green at 46,841.40 before the RBI’s fifth monetary policy of the financial year 2023-24 on Friday, says Deven Mehta, Research Analyst, Choice Broking

The market has traded negative with the Sensex losing 0.19 per cent and closed at 69,521.69 and Nifty was down by 0.17 per cent intra-day and closed at 20,901.15 levels whereas Bank Nifty closed flat, up by 0.01 per cent and settled at 46,841.40.

Among sectors, Nifty Auto, Nifty PSU Bank and Nifty Pharma ended in green while Nifty IT, Nifty FMCG and Nifty Metal ended on the lower side, he said.

In Nifty stocks, Powergrid, Adani Ports and Cipla were the top gainers while Bharti Airtel, HUL and ONGC were the prime laggards.

Vinod Nair, Head of Research at Geojit Financial Services said the market took a breather, the investors are in a wait-and-watch mode ahead of the monetary policy announcement.

A better-than-estimated Q2 GDP growth, ease in global oil prices and drop in global bond yield will be the silver lining for the MPC.

However, the expectation of a rise in domestic November inflation, drop in Rabi cultivation and increase in foodgrain prices will influence RBI to adopt a cautious approach in the short-term.