Equity benchmarks Sensex and Nifty opened on a choppy note on Friday tracking slight gains in index majors Wipro, Tata Steel and RIL as investors remained cautious ahead of the RBI policy outcome.
After surging 262 points in opening trade, the Sensex paired most of its gains to trade 7.57 points higher at 59,042.52. The Nifty inched up 9.65 points at 17,649.20.
From the 30-share pack, Reliance Industries Limited, Tata Steel, Titan, Dr Reddy’s and Wipro were among the gainers.
In contrast, Tech Mahindra, NTPC, and HDFC twins were among the major laggards.
“RBI monetary policy will decide the further directions for the markets,” Mohit Nigam, Head – PMS, Hem Securities, said.
In Asia, markets in Hong Kong, Seoul, Shanghai, and Tokyo were trading lower in mid-session deals.
Stocks in the US ended higher in the overnight session.
International oil benchmark Brent crude declined 0.34 per cent to USD 100.24 per barrel.
Foreign institutional investors continued to offload shares worth ₹5,009.62 crore on Thursday, as per exchange data.
In the previous trade, the Sensex slumped 575.46 points or 0.97 per cent to settle at 59,034.95. The Nifty also declined 168.10 points or 0.94 per cent to close at 17,639.55.
“Today’s monetary policy is unlikely to impact the market significantly even if there is a surprise rate hike. That would be interpreted by the market positively indicating that the RBI is not behind the curve,” according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The real concern for the market, going forward, would be the aggressive rate hikes and quantitative tightening by the Fed expected in the coming 12 months, he added.
“Crude softening to around $100 is positive while FIIs again turning sellers will provide ammunition to the bears,” Vijayakumar, said.