Indices trade tad higher awaiting RBI MPC decisiona

Indian benchmark indices are trading with slight gains on Wednesday, December 4, 2024, as market players gear up for the upcoming monetary policy decision of the central bank. At 11 AM, the Nifty50 is trading 0.29% higher at 24,528.35 points and the BSE Sensex is trading with slight gains of 0.34% at 81,120.80 points.

RBI MPC Decision

The Reserve Bank of India-led (RBI) Monetary Policy Committee (MPC) has commenced its meeting today and will announce their decision on the interest rate and stance. Market veterans expect that the interest rate will remain unchanged at 6.50% and the stance will continue to be “neutral”. Despite the sharp dip in the July-September quarter Gross Domestic Product at 5.4% against the central bank’s estimate of 7%, the committee may opt for holding the interest rate steady as the headline inflation continues to remain high. 

RBI Governor Shaktikanta Das, whose term ends on December 10, may want to delay rate cuts even as the Indian economy suffers from the effects of the depreciating rupee, reducing credit uptake and stagnating manufacturing and services Purchasing Managers’ Index. 

FII & DII trades

Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) were net buyers on December 3, 2024, pumping in ₹3,664.67 crores while Domestic Institutional Investors (DIIs) were net sellers, taking away ₹250.99 crores from the markets.

Conclusions

Overall, the Indian equity markets present a good opportunity for investors that are interested in share market investments. The indices have been in an uptrend for three-consecutive session so far and the return of FIIs bodes well for domestic stocks.