The market is focused on the monetary policy announcement by Reserve Bank Governor Sanjay Malhotra this morning. A reduction of 0.25 percentage points (25 basis points) in the repo rate and measures to increase liquidity for banks are anticipated. A rate cut could lead to a further depreciation of the rupee. Global cues are negative, with Asian markets opening lower and US futures also trading in the red.
In the derivatives market, Gift Nifty closed at 23,673.00 and climbed to 23,705 this morning, indicating that the Indian market may open with modest gains.
European markets closed at record highs yesterday with significant gains. The Bank of England cut its interest rate by 0.25 percentage points (25 basis points) and hinted at three more cuts this year. The UK's 2025 growth forecast has been lowered from 1.5% to 0.75%. A shipping company exceeded earnings expectations, boosting its stock by 6.35%, while Volvo Cars fell 11% after warning of slower revenue growth.
US markets were mixed on Thursday. The Dow Jones dipped slightly, while the other two indices rose. Ford Motor shares fell 7% after warning of a weak year, and Honeywell dropped 5% due to lower-than-expected earnings. In contrast, Philip Morris surged 11% on better-than-expected results.
The Dow Jones index closed 125.65 points (0.28%) lower at 44,747.63. The S&P 500 rose 22.09 points (0.36%) to 6,083.57, while the Nasdaq climbed 99.66 points (0.51%) to 19,791.99.
Amazon’s post-market results showed higher-than-expected profits, but the company warned of weaker revenue growth in the future. Its stock fell 5% as a result. A stronger dollar is expected to hurt the company’s performance.
In futures trading, the Dow Jones declined 0.05%, the S&P 500 fell 0.11%, and the Nasdaq dropped 0.12%.
The yield on US 10-year bonds rose to 4.436%.
The Indian stock market closed lower yesterday as foreign institutional investors increased their selling, and concerns about slower economic growth spread. As on the previous day, the market started strong but turned weak later in the session.
Midcap and smallcap stocks performed well again yesterday, while large cap stocks saw declines. IT, pharma, and private bank stocks were among the gainers, while realty, auto, FMCG, consumer durables, metal, and media stocks faced sharp declines.
The market is anticipating an interest rate cut from the Reserve Bank. The monetary policy announcement is scheduled for 10 a.m.
On Thursday, the Nifty fell 92.95 points (0.39%) to close at 23,603.35. The Sensex declined 213.12 points (0.27%) to 78,058.16. The Bank Nifty edged up 39.05 points (0.08%) to end at 50,382.10. The mid cap index dropped 1.28% to 53,500.85, while the small cap index fell 0.30% to close at 17,056.75.
Foreign institutional investors recorded a net sale of ₹3,549.95 crore in the cash market on Wednesday, while domestic funds and financial institutions made net purchases worth ₹2,721.66 crore.
Market breadth turned negative. On the BSE, 1,847 stocks advanced while 2,098 declined. On the NSE, 1,334 stocks gained while 1,495 declined.
If the Nifty remains weak today, support is expected around the 23,400–23,200 range. A bullish recovery will be possible only if the index rises above 23,800.
For the Nifty, short-term support levels are at 23,560 and 23,500, while resistance is expected at 23,730 and 23,860.
Companies including LIC, Oil India, Mahindra & Mahindra, Mazagon Dock Shipbuilders, Balrampur Chini, Borosil, Wockhardt, VA Tech Wabag, Saglee, Sun TV, NHPC, VST Industries, and Linde India will release their third-quarter earnings today.
SBI posted an 84.3% rise in net profit for the third quarter, with net interest income increasing by 4.6%. Last year, a one-time salary revision payout had impacted its profits.
Aurobindo Pharma’s revenue increased by 8.5%, but net profit declined by 9.7%. Britannia Industries reported a 7.9% revenue increase, while net profit grew by only 4.5%. Hero MotoCorp’s revenue rose by 5%, and net profit surged by 12.1%. ITC saw an 8.6% increase in revenue, but net profit rose by only 1.2%. BSE’s revenue rose by 4%, but net profit fell by 37% from the previous quarter. Ramco Cements’ revenue declined by 6%, but net profit jumped by 116%. Apollo Tyres’ revenue increased by 5%, but net profit fell by 32%. MRF reported a 14% revenue increase, but net profit dropped by 40%. Airtel’s revenue grew by 19%, while net profit surged by 505%. The company decided to sell 12,700 towers to Indus Towers for ₹2,174.6 crore. Selling its stake in Indus Towers generated ₹7,546 crore, contributing to the sharp profit growth.
After hitting record highs, gold declined yesterday due to profit-taking. Spot gold fell $11 to close at $2,856.40 per ounce but rebounded to $2,864 per ounce this morning.
In Kerala, gold prices rose by ₹200 per sovereign on Wednesday, reaching a record ₹63,440.
Silver traded at $32.24 per ounce.
US bond prices fell, and yields rose. The yield on 10-year bonds climbed from 4.42% to 4.436%. The dollar index strengthened to 107.70.
The rupee continued to weaken, closing 11 paise higher at ₹87.58 per dollar yesterday. The market expects the Reserve Bank to cut the repo rate by 0.25 percentage points (25 basis points). In futures trading, the dollar rose to ₹88.42.
Crude oil prices continue to decline. Brent crude fell by 0.5% to $74.28 per barrel but recovered slightly to $74.32 this morning. WTI crude traded at $70.60, while UAE’s Murban crude dropped to $76.93.
Cryptocurrencies in decline
Cryptocurrency prices fell. Bitcoin declined by 1%, nearing $96,600. Ethereum rose to around $2,690.
Industrial metals gained yesterday. Copper rose 0.55% to $9,164.70 per tonne. Aluminium climbed 0.4% to $2,626.80. Tin increased 2.62%, lead 0.86%, nickel 2.27%, and zinc 1.89%.
Sensex: 78,058.16 (-0.27%)
Nifty 50: 23,603.35 (-0.39%)
Bank Nifty: 50,343.05 (+0.37%)
Mid cap 100: 54,180.85 (+0.68%)
Small cap 100: 17,108.50 (+1.85%)
