Investors are adopting a cautious stance in the final trading session of the week before the decision on the interest rate of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC). The domestic benchmark index Sensex and Nifty became red after opening with a slight lead on Friday (7 February). The Sensex is trading below 78 thousand and the Nifty is trading below 23,600 levels.
Market opened with decline
By 9.30 am, the Sensex opened 31.48 points to 78,026. While the Nifty fell 5.80 points to open at 23,597 points.
In addition to the decision of RBI, indications from foreign institutional investors (FIIs) and global markets will decide the direction of domestic markets on Friday (7 February). The Reserve Bank of India can reduce the benchmark repo rate by 25 basis points to 6.25 percent today. The Sensex fell 213.12 points or 0.27% to close at 78,058.16 in the last trading session. The Nifty 50 also fell at 92.95 points or 0.39% to close at 23,603.35.
Third quarter results:
Today, many big companies like M&M, NHPC, Majhgaon Dock, Fortis Healthcare and Walkhart will announce their third quarter results. Investors will also react to the results of companies like Airtel, Hero MotoCorp, ITC and Britannia.
Global signs:
On Friday, the Asian market opened with a decline, as investors were waiting for India’s interest rate decision and Japan’s domestic expenses data. Meanwhile, Australia’s ASX remained 200 steady and trading slightly up, while Japan’s Nikkei also fell 0.29% and Topix also fell 0.28%. Similarly, South Korea’s Kospie was also trading with a decline of 0.14%.
Domestic spending in Japan increased by 2.7% year-on-year in December, which is much higher than 0.2% of Reuters. This figure indicates better performance than expected in the market.
On the other hand, a mixed trend was observed in the US markets. On Thursday, S&P 500 closed with a gain of 0.36% for the third consecutive day. Nasdaq also rose 0.51%, while Dow Jones closed down 0.28%. The US market is now waiting for the unemployment rate of January and non-agricultural pay data, which will be released today and expected to get future economic indications.
