Stock Market Today: Sensex Plummet Over 150 Points, Nifty Below 23,700, Investors Await RBI MPC
Indian benchmark indices, Sensex and Nifty, opened slightly higher on Thursday as optimism for an upcoming rate cut outweighed concerns over escalating global trade tensions. IT and oil & gas stocks supported the Nifty 50, while FMCG stocks trailed behind. At 10 am, the Sensex fell by 153.17 points, or 0.20 per cent, at 78,118.11, while the Nifty dropped by 55.00 points, or 0.23 per cent, to reach 23,641.30. A total of 1,918 stocks advanced, 1,160 declined, and 120 remained unchanged. Investors expect the Reserve Bank of India (RBI) will ease policy, with Governor Sanjay Malhotra's inaugural monetary policy review in the spotlight. Following the government’s personal tax cuts in the Union Budget aimed at boosting consumption, the RBI's next move could play a crucial role in shaping the growth outlook. While the RBI’s policy decision shapes domestic sentiment, global markets are still closely tied to the unpredictable actions of US President Donald Trump. China has formally brought its trade dispute with the US to the World Trade Organization (WTO), further escalating tensions as Washington intensifies its tariff policies. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The market is moving into a consolidation phase on expectations of a pick up in growth in the coming quarters. In the near-term the market is likely to get a mild boost from a possible 25 bp rate cut by the MPC tomorrow. Even though steadily depreciating INR doesn’t provide a favourable macro backdrop for a rate cut, the MPC is likely to go for a 25 bp cut tomorrow to keep the optimistic momentum provided by the Budget going.” “The macro trend in the US is turning favourable for EMs like India. The dollar index slipping to 107.56 and the 10-year yield declining to 4.4 per cent are positives. FIIs are unlikely to press selling the way they did in January. Financials will be in focus today on rate cut expectations,” he added. Broader Market Update The broader market saw slight gains, with the BSE Midcap increasing by 0.1 per cent and the BSE Smallcap rising by 0.3 per cent. Sectorial Update IT stocks were in the spotlight after Cognizant Technology Solutions, a US-based company, reported strong Q4 results that exceeded revenue expectations, although it provided a weaker-than-anticipated guidance for CY25. The Nasdaq-listed firm forecasted constant currency revenue growth of 3.5-6 per cent for 2025. Despite the cautious outlook, Nifty IT rose by 0.6 per cent, supported by gains in Infosys, TCS, and Persistent Systems.
Indian benchmark indices, Sensex and Nifty, opened slightly higher on Thursday as optimism for an upcoming rate cut outweighed concerns over escalating global trade tensions. IT and oil & gas stocks supported the Nifty 50, while FMCG stocks trailed behind.
At 10 am, the Sensex fell by 153.17 points, or 0.20 per cent, at 78,118.11, while the Nifty dropped by 55.00 points, or 0.23 per cent, to reach 23,641.30. A total of 1,918 stocks advanced, 1,160 declined, and 120 remained unchanged.
Investors expect the Reserve Bank of India (RBI) will ease policy, with Governor Sanjay Malhotra's inaugural monetary policy review in the spotlight. Following the government’s personal tax cuts in the Union Budget aimed at boosting consumption, the RBI's next move could play a crucial role in shaping the growth outlook.
While the RBI’s policy decision shapes domestic sentiment, global markets are still closely tied to the unpredictable actions of US President Donald Trump. China has formally brought its trade dispute with the US to the World Trade Organization (WTO), further escalating tensions as Washington intensifies its tariff policies.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The market is moving into a consolidation phase on expectations of a pick up in growth in the coming quarters. In the near-term the market is likely to get a mild boost from a possible 25 bp rate cut by the MPC tomorrow. Even though steadily depreciating INR doesn’t provide a favourable macro backdrop for a rate cut, the MPC is likely to go for a 25 bp cut tomorrow to keep the optimistic momentum provided by the Budget going.”
“The macro trend in the US is turning favourable for EMs like India. The dollar index slipping to 107.56 and the 10-year yield declining to 4.4 per cent are positives. FIIs are unlikely to press selling the way they did in January. Financials will be in focus today on rate cut expectations,” he added.
Broader Market Update
The broader market saw slight gains, with the BSE Midcap increasing by 0.1 per cent and the BSE Smallcap rising by 0.3 per cent.
Sectorial Update
IT stocks were in the spotlight after Cognizant Technology Solutions, a US-based company, reported strong Q4 results that exceeded revenue expectations, although it provided a weaker-than-anticipated guidance for CY25. The Nasdaq-listed firm forecasted constant currency revenue growth of 3.5-6 per cent for 2025. Despite the cautious outlook, Nifty IT rose by 0.6 per cent, supported by gains in Infosys, TCS, and Persistent Systems.
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