Sensex resumes rally after 1-day hiatus as the oil cools down; all eyes on RBI outcome
Following a standstill the day before, benchmark indices rose on Friday as a result of a steep decline in crude oil prices and a strengthening of the rupee against the dollar. The outcome of the RBI policy review, which was due for later in the day, was eagerly anticipated by investors. According to economists, the market is already factoring in a 35 basis point increase.
The BSE Sensex was up 130 points, or 0.22 percent, at 58,429.57 at 9:22 a.m. Nifty50 was up 51.65 points or 0.3%, trading at 17,433.65. The smallcap and midcap indices both increased marginally by 0.40 percent.
“Traders should pay special attention to the upcoming session because the RBI is scheduled to announce its monetary policy. It would be fascinating to watch whether it turns out to be a non-event or not. Additionally, global development should not be disregarded, and as a result, future events may bring about some exciting developments “said Angel One’s Sameet Chavan.
Prior to the RBI decision, the partially convertible rupee was trading at 79.15 to the dollar early in the morning, down from its previous closing of 79.4650. Brent crude oil last traded at $94.44 a barrel, down more than 10% from this week’s high.
The majority of the stocks in the Sensex pack were up, with Ultratech Cement topping the pack with a gain of around 2%. Among the biggest winners were Airtel, L&T, SBI, and Wipro. Index heavyweight RIL, on the other hand, had the weakest performance. Other losses were TechM, IndusInd Bank, and Maruti Suzuki, each of which fell by less than 1%.
“Global market cues and significant FII buying, which has exceeded Rs 5300 crore so far in August, are influencing the market’s momentum right now. The drop of Brent crude to $94 is good for India’s macroeconomics, and the dollar index’s collapse to below 106 is encouraging for capital inflows into India. Sectors including capital goods, FMCG, construction, and electricity are likely to gain resilience from FII purchases, “Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated.
A few businesses scheduled to report their earnings today include Titan Company, Mahindra & Mahindra, FSN E-commerce Ventures, One97 Communications, Alkem Laboratories, Petronet LNG, NMDC, Aditya Birla Fashion and Retail, Motherson Sumi Wiring India, and Fortis Healthcare.