Markets climb in early trade ahead of RBI monetary policy decision

Mumbai: Benchmark stock market indexes rose early in the trading session on Wednesday in anticipation of the Reserve Bank of India's monetary policy announcement. The purchase of banking and IT stocks contributed to the upward movement in market trends. In early trading, the BSE Sensex, which consists of 30 stocks, increased by 123.45 points or 0.15 percent to reach 81,758.26. The NSE increased by 39.65 points, which is equivalent to 0.16 pc, reaching a total of 25,052.80. Tata Motors, Tech Mahindra, Bajaj Finance, Maruti Suzuki India, HCL Technologies, State Bank of India, Bharti Airtel, Asian Paints, and Axis Bank were the companies that gained among the 30 Sensex companies.

ITC, Nestle India, HDFC Bank, Kotak Mahindra Bank, Reliance Industries, and JSW Steel were the underperformers. According to exchange data, Foreign Institutional Investors (FIIs) sold equities amounting to Rs 5,729.60 crore on Tuesday, whereas Domestic Institutional Investors (DIIs) purchased equities worth Rs 7,000.68 crore. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the trend of FIIs selling in India and buying in China seems to be fading, as shown by the decrease in FII selling and profit-taking in Chinese stocks, especially those on the Hong Kong stock exchange.

FIIs are offloading assets due to valuation worries while DIIs are purchasing as they possess ample funds to invest and their reserves are increasing. Vijayakumar predicted that this trend is expected to persist. Market participants were also closely monitoring the RBI's monetary policy. Experts believe that the RBI will not likely mimic the US Federal Reserve's 50 basis points rate cut, or the central banks of some developed nations who have also reduced interest rates. The BJP's win in Haryana has lifted the party's spirits and boosted confidence in the markets. The feelings will be even more positive if the MPC chooses to adjust the monetary policy position