Synopsis
On February 6, the stock market in Mumbai showed little movement as investors await the results of the RBI's monetary policy committee meeting. The Sensex and Nifty indices experienced small declines, while traders adjust positions ahead of significant events.Key Takeaways
- Mumbai stock market trades almost flat.
- Investors anticipate RBI's MPC meeting outcome.
- FIIs sold equities worth Rs 1,682.83 crore.
- Traders are adjusting positions before key events.
- Swiggy shares decline after poor Q3 results.
Mumbai, Feb 6 (NationPress) The stock market was trading nearly unchanged early Thursday, as investors anticipate the outcome of the RBI's monetary policy committee (MPC) meeting set for Friday.
At 9:36 a.m., the Sensex stood at 78,164.89, reflecting a decline of 106.39 points or 0.14 percent, while the Nifty dropped 34 points or 0.15 percent to 23,662.10.
Experts suggest that after a positive start, Nifty may find support at 23,600, followed by 23,500 and 23,400.
“On the upside, 23,800 could serve as an immediate resistance, with 23,900 and 24,000 following,” stated Hardik Matalia, Derivative Analyst at Choice Broking.
Stocks like Infosys, Bajaj Finance, and Tata Consultancy Services contributed positively to the Nifty 50 index, whereas Mahindra and Mahindra, ITC, Bharti Airtel, and HDFC Bank negatively impacted it.
On the NSE, most sectors showed positive performance, although Nifty auto and Nifty FMCG faced declines.
Online food delivery service Swiggy experienced a drop in its stock price during early trading after reporting disappointing Q3 results.
Investors are now anticipating a 25bps rate cut from the Central Bank's MPC, which would mark the first easing in nearly five years to promote growth.
This potential action aligns with the Budget's goals to stimulate economic activity while maintaining a cautious fiscal stance, ensuring stability in currency and inflation.
Considering the Union Budget's focus on boosting consumption to drive economic growth, the RBI may contemplate a shift in the policy rate cycle.
In the meantime, foreign institutional investors (FIIs) turned net sellers on February 5, offloading equities valued at Rs 1,682.83 crore, while domestic institutional investors (DIIs) acquired stocks worth Rs 996.28 crore.
Sameet Chavan, Head Research, Technical and Derivative at Angel One, noted that traders are opting to book some of their long positions due to upcoming domestic events, including the MPC results and Delhi state election outcomes.
Moreover, ongoing global factors such as the trade war add to the prevailing uncertainty, he added.
