Sensex Today: Benchmark indices were listless on Friday after the Reserve Bank of India kept repo rate unchanged at 6.5 per cent for a seventh straight policy. It also maintained the gross domestic product (GDP) and CPI inflation forecast for fiscal 2024-25 (FY25).
The S&P BSE Sensex closed at 74,248, up 21 points, while the Nifty50 shut shop unchanged at 22,514.
Gains in Kotak Bank, ITC, HDFC Bank, Bajaj Finserv, ICICI Bank, IndusInd Bank, and SBI helped the benchmarks limit downside.
In the broader markets, outperformance of the indices continued with the BSE MidCap and SmallCap indices gaining 0.5 per cent each.
Among sectors, the Nifty Realty index gained 1.5 per cent, followed by the Nifty Bank (up 0.9 per cent). On the downside, the Nifty IT fell 0.5 per cent.
Expert View: Dr VK Vijaykumar, Geojit Financial
Some headwinds which have the potential to impact equity markets have emerged. One is geopolitical: the Iran-Israel skirmishes. The second is the concern that the rate cut expected from the Fed can be lower than three and that the first cut may come only in October. The US jobs data to be released today will throw more light on this. The Middle East skirmishes have pushed up Brent crude to $91 and if oil continues to rise that can pose macro headwinds for India.
It is possible that the exuberant Indian investors DIIs flush with money may ignore the headwinds buy the dips imparting resilience to the market.
Amidst market weakness, banking stocks provide opportunities to buy. Data regarding deposit and loan growth from banking majors, particularly HDFC Bank are positive. Small finance banks data also indicate a healthy trend.
Global Cues
Overnight, the US market reversed course and ended with sharp losses as Fed officials cautioned on expectations of early rate cuts, and stressed that inflation needs to be closely watched. The focus now shifts on the job report due tonight.
The S&P 500, Dow Jones and Nasdaq dropped over 1 per cent each. Meanwhile, the US 10-year bond yield continued to hover around elevated levels of 4.30 per cent. Brent Crude Oil futures topped the $91 per barrel mark, and Gold futures dipped a wee bit below $2,300 per ounce.
Nearer home, the Nikkei tumbled over 2% after the Bank of Japan governor hinted at a likely rate hike. Hang Seng and Kospi were down around 1 per cent each.
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