The Reserve Bank of India’s (RBI) monetary policy (MPC) announcements , which are anticipated to provide the markets new direction in the upcoming week, are being anticipated by domestic stock indices.
During the second quarter of Financial year 25, India’s GDP growth dropped to 5.4%, which came out at the lowest level in two years.
On the other hand, stock markets have recovered somewhat over the last week. Despite conflicting market signals, the Sensex 30 and Nifty 50 indices combined increased by 1% throughout the week, marking their second consecutive week of gains.
The GDP statistics, which later showed that India’s growth was 5.4%, less than the RBI’s prediction of 7.0%.
Currently -Sensex is 6,000.0 points behind its peak of 85,978.0 points
Important data releases and activities are scheduled for the following week. First, participants will respond to Friday’s post-market GDP figures.
The RBI MPC’s monetary policy review will be the main emphasis, and it will be very important for policymakers to understand the GDP figures and take a position on the rate trajectory.
Additionally, he pointed out that market patterns are probably going to be guided by high-frequency indicators like cement and vehicle sales as well as HSBC Manufacturing and Services PMI data. Additionally, it is anticipated that foreign inflows would continue to play a significant role in shaping the overall market mood.
Although the selling pace decreased in the second half of the month, FII’s in India became net sellers for the second consecutive month in Nov. Dec 4 to 6 is when the RBI will hold its MPC review meeting.
Due to fund withdrawals, India Inc.’s lower-than-expected Quarter 2 profits, and persistently high inflation, stocks have been erratic in recent weeks. On Friday, the Nifty ended the day at 24,131.050 points, up 216.900 points, while the BSE benchmark Sensex closed at 79,746.240 points, up 702.500 points.
This came before India’s GDP statis, which later showed that India’s growth was 5.4%, less than the RBI’s prediction of 7.0%.
