Sensex, Nifty decline in early trade ahead of RBI monetary policy decision

Mumbai: Sensex and Nifty both dropped in early trading on Thursday prior to the Reserve Bank of India's monetary policy announcement. Ongoing foreign capital outflows and poor performance in the US markets were also factors in the decline of domestic stocks during early trading.

The BSE Sensex with 30 shares went down by 325.97 points to 79,142.04. The NSE Nifty dropped by 99.1 points, reaching 24,198.40. Infosys, JSW Steel, Larsen & Toubro, Power Grid, UltraTech Cement, and Tata Steel were the top underperformers out of the 30 Sensex companies. Tata Motors, Titan, ITC, and Sun Pharma experienced gains at the start of trading.

The Reserve Bank's committee began discussing the next bi-monthly monetary policy, with predictions suggesting no alterations to the benchmark interest rate due to stable inflation and economic growth concerns. The announcement of the decision made by the Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das will be made later today.

Tokyo, Shanghai, and Hong Kong saw gains in Asian markets, while Seoul experienced a drop in trading. Wednesday saw a decline in the US markets. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 3,314.76 crore on Wednesday.

In the cash market over the past four days, FIIs have offloaded Rs 20,228 crore. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that it is a sensible decision considering India's high valuations, concerns about the US recession, and issues with the yen carry trade unwinding.

Brent crude, the worldwide standard for oil prices, rose by 0.42 pc to reach USD 78.66 per barrel. The BSE benchmark Sensex surged by 874.94 points or 1.11 percent on Wednesday to close at 79,468.01. Throughout the daytime, it increased by 1,046.13 points, equivalent to 1.33 percent, reaching 79,639.20. The NSE Nifty gained 304.95 points, equivalent to 1.27 pc, reaching 24,297.50. During the same day, it jumped by 345.15 points, equivalent to a 1.43 percent increase, reaching 24,337.70.

The Reserve Bank's committee began discussing the next bi-monthly monetary policy, with predictions suggesting no alterations to the benchmark interest rate due to stable inflation and economic growth concerns. The announcement of the decision made by the Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das will be made later today.