Benchmark stock market indices ended the week flat despite gains in auto and FMCG sector stocks.
After the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decided to maintain the status quo on key interest rates for the 11th consecutive time. There were hopes for a rate cut given the decline in growth rate for Q2 FY25, but the central bank stuck to its neutral stance, underscoring its commitment to achieving a durable alignment of inflation with the target range of 2-6%.
The S&P BSE Sensex lost 56.74 points to end at 81,709.12, while the NSE Nifty50 was down 30.60 points to close at 24,677.80.
Vinod Nair, Head of Research, Geojit Financial Services said that though benchmark indices concluded on a flattish trend, Indian broader indices displayed optimism as the RBI acknowledged the downward growth trend while last-mile inflation persisted.
“By lowering the CRR and injecting Rs 1.16 lakh crore into the financial system, the RBI aims to stimulate economic growth amid increased liquidity. The overall market exhibited a mixed outlook, reflecting a cautious yet resilient stance, with sector rotation and specific stock movements shaping market sentiment,” he added.
The top gaining stocks for the day included Tata Motors, which rose 3.21%, Bajaj Auto with a 2.34% increase, Axis Bank going up 1.50%, and BPCL increasing 1.28%.
On the downside, Adani Ports declined 1.51%, CIPLA lost 1.42%, Bharti Airtel fell 1.09%, HDFC Life decreased 1.08%, and Indusind Bank dropped 0.99%.
“The broader market reacted positively even before the RBI’s announcement regarding the CRR cut. A classic example is the notable jump in the banking and financial index over the past week, which is likely to sustain this month,” said VLA Ambala, Co-Founder, Stock Market Today.
The top gaining sectors were Nifty Consumer Durables, up 1.09%, Nifty Auto, up 0.94%, Nifty Metal, up 1.23%, Nifty Financial Services 25/50, up 0.10%, Nifty FMCG, up 0.24% and Nifty Midsmall Healthcare, up 0.03%.
On the downside, the top declining sectors were Nifty Bank, down 0.18%, Nifty IT, down 0.20%, Nifty Realty, down 0.05%, Nifty Financial Services, down 0.11%, Nifty Pharma, down 0.13%, Nifty Private Bank, down 0.01%, Nifty Healthcare Index, down 0.06%, and Nifty Oil & Gas, down 0.03%.
“During today’s session, Nifty formed a long-legged doji candlestick pattern above the 50-day EMA on the daily timeframe while the RSI reading stood at 60. This situation is ideal for accumulating value stocks and banking on the index growth rate. I recommend traders focus more on mid-cap and small-cap industry leaders for better outcomes. Based on recent developments, we could expect Nifty to gain support between 24630 and 24520 and face resistance near the 24740 and 24850 levels in the next session,” said Ambala.