Mumbai– Indian stock markets closed in the green on Wednesday, buoyed by strong global cues, including robust U.S. jobs data, as investors kept a close watch on the Reserve Bank of India’s ongoing Monetary Policy Committee (MPC) meeting, which has sparked speculation about a possible rate cut.
The Sensex rose 260.74 points, or 0.32%, to settle at 80,998.25, while the Nifty gained 77.70 points, or 0.32%, to close at 24,620.20.
Midcap and smallcap stocks outperformed largecaps. The Nifty Midcap 100 index climbed 407.55 points, or 0.71%, to 57,924.65, and the Nifty Smallcap 100 advanced 142.95 points, or 0.79%, to 18,257.10.
Gains were broad-based across sectors. Auto, IT, PSU banks, financial services, pharma, FMCG, metal, media, energy, and private banking indices all ended in positive territory. The only sector to close in the red was real estate.
Rupak De, Senior Technical Analyst at LKP Securities, said market sentiment remained cautious as investors awaited the RBI’s rate decision. “The Nifty continues to show a lackluster tone and may remain sideways until the central bank’s announcement and commentary on Friday,” he said. De added that immediate support for the Nifty is at 24,500, and a break below that level could trigger further weakness. Resistance levels are seen at 24,750 and 24,900.
Vikram Kasat, Head of Advisory at PL Capital, noted that the market opened on a firm note, supported by positive global cues and anticipation around the RBI’s policy stance. “The MPC meeting has heightened speculation, with investors divided over the likelihood and extent of a rate cut. Meanwhile, upbeat U.S. labor data boosted sentiment across global markets,” he said.
As long as the Nifty stays above 24,500, near-term sentiment remains constructive. However, clarity from the RBI and global macro developments will be critical for the market’s next direction.
In the currency market, the rupee weakened by 25 paise to trade at 85.87 against the U.S. dollar, inching closer to the 86.00 mark. Analysts attributed the decline to continued selling by foreign investors ahead of the RBI decision. The rupee is expected to trade in the range of 85.50 to 86.40. (Source: IANS)
