Markets in green ahead of RBI policy; Nifty above 17,400 led by financials and realty stocks

5 Aug 2022 , 09:38 AM

Indian markets were green, however, a cautious note was witnessed as traders prepare for RBI’s monetary policy on Friday. Both benchmarks Sensex and Nifty 50 traded in the green led by broad-based buying across sectoral indices with banking, financials, realty, IT and metal stocks were marginally higher. A scattered trend was seen in global cues while a volatile session is expected in the indian markets in the day ahead.

The Reserve Bank of India (RBI) is set to present India’s third bi-monthly monetary policy for 2022-23 today. Markets, economists and investors are expecting yet another interest rate hike to tame inflationary pressure.

At around 09.34 AM, Sensex was trading at 58,479.93 up 181.13 points or 0.31%. Meanwhile, Nifty 50 performed at 17,434.25 up by 52.25 points or 0.30%. 

Top bulls on Nifty are – Ultracements soaring 2% followed by Bharti Airtel surging 1.6%, while Grasim, Adani Ports and LT jumped more than 1% each. Hindustan Unilever climbed over 0.9%, while Wipro and SBI 0.8% each.

Top bears on Nifty were – Heavyweight RIL plunging 0.6% followed by Cipla and Hero MotoCorp tumbling 0.5% each, while Maruti Suzuki, APL Apollo slipping by 0.4% each. Nestle, Tech Mahindra were marginally down.

Companies that will be in focus today ahead of their June 2022 quarters are – Mahindra & Mahindra, Titan Company, Engineers India, NMDC, FSN E-Commerce Ventures (Nykaa), IRB Infrastructure Developers, One 97 Communications, Petronet LNG, Aditya Birla Fashion and Retail, Alkem Laboratories, Pfizer, Raymond, Computer Age Management Services, Eris Lifesciences, Fortis Healthcare, Greenply Industries, Minda Corporation, Indigo Paints, Motherson Sumi Wiring India, R Systems International, Shipping Corporation of India, Talbros Engineering, UCO Bank, and Zensar Technologies.

RBI’s monetary policy will play a major role in the markets outlook today. In the previous policy, the RBI increased its policy repo rate by 40% basis points in May followed by another hike of 50% basis points in June. The policy repo rate is currently stands at 4.90%.

On Asian markets, Japanese ‘Nikkei’ trading higher by 100 points while most other Asian markets also traded higher even as the star for yesterday was the Taiwan market which ignored the geopolitical issues & saw a strong comeback. 

On Wall Street, overnight, US markets close in a volatile day with profit booking seen in Dow Jones after the stellar rally as it closes lower by 85 points. Nasdaq continues to be higher as it enters a new bull market gaining over 20% from June lows.