Indian equity benchmarks opened largely flat on Thursday, October 8, as investors assessed the Reserve Bank of India’s latest monetary policy decision alongside weak global cues and rising crude oil prices.
The domestic market is opening for the first time after the RBI Monetary Policy Committee raised the repo rate by 25 basis points to 5.5 per cent on Wednesday. The central bank also raised its inflation projections while upgrading its GDP growth estimates.
The BSE Sensex started trading more than 150 points down and slipped below 72,500, while the NSE Nifty50 rang the opening bell a little over 22,550, falling 41 points, as of 9:15 AM.
RBI MPC Rate Hike In Focus As Markets Open
The RBI’s 25-basis-point repo rate increase is likely to remain a key factor for domestic equities through Thursday’s session.
The policy decision comes against a backdrop of elevated crude oil prices and changing global financial conditions, with higher bond yields also weighing on risk appetite overseas.
GIFT Nifty Signals Cautious Start
The GIFT Nifty had indicated that the Nifty50 could begin the session on a negative note, as global equities weakened after bond yields extended their gains.
At around 9:08 AM, the Sensex was at 72,663.48, up 24.78 points or 0.03 per cent, while the Nifty stood at 22,599.05, down 4.00 points or 0.02 per cent.
Asian Markets Track Overnight Wall Street Losses
Asian markets were trading lower on Thursday, following losses on Wall Street as rising bond yields reduced investors’ appetite for equities.
Japan’s Nikkei 225 fell 0.55 per cent, while South Korea’s KOSPI declined 0.2 per cent.
Overnight, the Dow Jones Industrial Average dropped 0.66 per cent, while the S&P 500 fell 0.22 per cent. The Nasdaq Composite also settled 0.22 per cent lower.
The benchmark 10-year US Treasury yield stood at 5.3 per cent, keeping global bond markets and interest-rate expectations in focus.
Brent Crude Crosses $101 As West Asia Tensions Persist
Crude oil prices moved higher amid concerns over supply following increasing attacks in the West Asia region.
Brent December futures were quoted at $101.85 per barrel, up 1.64 per cent on the Intercontinental Exchange.
The rise in oil prices adds another factor for Indian equities to assess as investors digest the RBI’s decision to tighten monetary policy and revise its inflation outlook.
Gold, Silver Edge Higher
Gold and silver futures also moved marginally higher, although gains remained capped by concerns over the possibility of further monetary tightening.
With the RBI having raised the repo rate and global bond yields remaining elevated, investors will continue to assess the impact of the evolving interest-rate environment on precious metals as well as equities.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
