Nifty, Sensex open in green, RBI policy announcement to drive markets today

• Indian stock indices opened green on Wednesday, following favourable assembly election results for the ruling party.
• The Nifty 50 index opened at 25,065.80 points, while the Sensex index opened at 81,954.58 points.
• The Reserve Bank of India is expected to announce its decision on policy rates.

On Wednesday, the Indian stock market exhibited a positive atmosphere at the opening bell, reflecting positive investor sentiment driven by the favourable outcome of the recent elections for the incumbent party.

The Nifty 50 index commenced the trading day at 25,065.80 points, registering a gain of 52.65 points, equivalent to a 0.21% increase. Similarly, the Sensex index opened at 81,954.58 points, representing a jump of 319.77 points or 0.39%.

Market analysts anticipate a pivotal announcement from the Reserve Bank of India (RBI) regarding interest rates later in the day. However, the consensus among experts suggests that the rates are likely to remain unchanged.

The RBI has maintained a steady repo rate of 6.50% for the past nine meetings, balancing its objectives of curbing inflation while fostering economic growth.

"After sessions of corrections, India is getting some support at the level of 25,800 for Nifty50. Good state election results for the ruling party, contrary to the exit polls, have brought some optimism in the domestic market. RBI policy outcome, though no cut is expected, a plausible change in stance to neutral is anticipated. And investors are likely to focus on the upcoming Q2 results where earnings are likely to improve marginally on a QoQ basis" said Vinod Nair, Head of Research, Geojit Financial Services.

Among sectoral indices on the National Stock Exchange, the Nifty PSU Bank index opened as the top gainer, with other indices also opening in the green.

In the Nifty 50 list, 38 stocks opened with gains, 11 stocks declined, and 1 remained unchanged.

"Nifty made a bounce back from expected support of 24750 and closed just above the 25,000 mark. With FIIs longs dropping further to 43%, Nifty may face resistance around the 25,100/25,150 range and any possibility of short covering can be expected above this range. Any break of crucial support of 24750 can witness another round of selling towards the 24,500/24,300 range" said Soni Patnaik, AVP, Derivatives Research Analyst, JM Financial Services.

Meanwhile, other Asian markets showed mixed trends on Wednesday. Japan's Nikkei 225 was up 0.83%, while the Shanghai Composite fell sharply by 5.61%. Hong Kong's Hang Seng index also dropped by 3.04%.

With inputs from ANI.

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