Friday, February 07, 2025: Benchmark indices BSE Sensex and Nifty50 opened on a cautiously optimistic note as investors eagerly awaited the Reserve Bank of India’s (RBI) monetary policy decision. The announcement, set to be delivered later today by the newly appointed RBI Governor, Sanjay Malhotra, holds significant implications for the market trajectory.
At the opening bell, the BSE Sensex rose by 87.80 points (0.11%) to trade at 78,145.96, while the Nifty50 gained 35.05 points (0.15%) to reach 23,638.40. Both indices reflected the cautious sentiment among market participants ahead of the anticipated interest rate announcement.
The RBI’s Monetary Policy Committee (MPC) has been discussing critical economic parameters such as interest rates, GDP growth projections, and the inflation outlook for the last two days. As indicated by a recent Business Standard poll, market analysts widely anticipate a 25-basis point reduction in the repo rate. If implemented, this would mark the first rate cut in five years, a move expected to stimulate economic growth amid global uncertainties.
Governor Malhotra’s maiden MPC decision is under heightened scrutiny, as investors and businesses seek clarity on the central bank’s stance in navigating challenges such as slowing global demand and moderating inflation. The MPC’s commentary on the state of the economy and future projections will be closely watched, as it could significantly influence market trends and investment decisions in the near term.
The stock market’s measured optimism reflects a blend of expectations and caution, with investors hoping for a rate cut to provide much-needed relief to borrowers and bolster domestic demand. At the same time, the MPC’s commentary will likely set the tone for future monetary policies.
Stay tuned for live updates throughout the day as the financial markets react to the RBI’s announcements and economic insights.
Disclaimer: The information provided here is for informational purposes only and should not be considered as financial or investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions. The author and publisher are not responsible for any losses incurred as a result of market activity or reliance on this information.