Stock market opens in negative ahead of RBI monetary policy

Mumbai (Maharashtra) [India], August 8 (ANI): The stock market opened on a bearish note today as investors awaited the Reserve Bank of India’s (RBI) monetary policy announcement.

The Sensex opened 242.27 points lower at 79,225.74, while the Nifty slipped by 74.75 points to open at 24,222.75.

The focus remains on RBI Governor Shaktikanta Das’s comments regarding inflation and GDP growth, with the central bank expected to maintain the repo rate at 6.5 per cent for the ninth consecutive meeting.

Among the Nifty companies, 12 advanced while 37 declined. Cipla, Tata Motors, ITC, Titan, and Dr. Reddy’s were the top gainers, whereas Infosys, ONGC, JSW Steel, Shriram Finance, and Wipro were the major losers.

Banking and market expert Ajay Bagga commented, “US markets ended lower on Wednesday. Asian markets are lower on Thursday. The risk-off sentiment is proving to be a continued drag despite the Bank of Japan attempts to bolster confidence. With a weekly expiry day, Indian futures are pointing to a weak day.”

Gold prices in India stood at Rs 68,850 per 10 grams for 24-carat gold as of August 8, marking a 1.82 per cent drop over the past week. Silver is priced at Rs 789.5 per 10 grams.

On the institutional front, foreign institutional investors (FIIs) sold shares worth Rs 3,314.76 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 3,801.21 crore on August 7, 2024.

Global crude oil prices saw modest gains, with WTI crude at USD 75.56 and Brent crude at USD 78.65. Asian markets are trading lower, with the Asia Dow down 0.24 per cent, Japan’s Nikkei 225 declining 1.41 per cent, Hong Kong’s Hang Seng down 0.76 per cent, and China’s Shanghai Composite falling 0.09 per cent.

In the U.S., stocks ended lower, with the Nasdaq Composite dropping 1.05 per cent to 16,195.85, the S&P 500 falling 0.77 per cent to 5,199.50, and the Dow Jones Industrial Average decreasing 0.60 per cent to 38,763.45.

As the day progresses, investors will closely watch the RBI Governor’s comments for insights into future monetary policy actions, especially concerning inflation and economic growth prospects.