Market Eyes RBI Policy Outcome and US Data After Profit Booking Pullback

8 Dec 2023 , 09:20 AM

After experiencing a robust rally in the past week, the market underwent profit booking in anticipation of the RBI policy and US Nonfarm payroll data. Today’s market movements will be influenced by the outcome of the RBI policy and insights shared by the Governor.

On Thursday, the Nasdaq concluded significantly higher, driven by Alphabet and Advanced Micro Devices, igniting a megacap rally fueled by newfound optimism surrounding artificial intelligence. Asian markets generally showed positive trends, with Kospi, Straits Times, and Taiwan Weighted all recording nearly a 1% increase. However, Nikkei experienced a decline of 1.4%.

Friday saw a dip in Asian stocks, disregarding the positive momentum on Wall Street. Traders exhibited heightened speculation about the Bank of Japan potentially approaching the conclusion of its negative interest rate policy.

Nifty futures on Gift Nifty exhibited marginal gains around 7.15 am, hinting at a flat-to-positive start for Dalal Street in anticipation of the RBI policy outcome.

Foreign portfolio investors turned net sellers on Thursday, with a net sale of Rs 1,564 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 9.6 crore.

The market’s winning streak, which persisted for seven days, came to an end on December 7th. The trading session was marked by volatility, culminating in a final decline of 132.04 points (0.19%) for the Sensex, settling at 69,521.69. The Nifty mirrored this trend, closing at 20,901.20, down 36.50 points (0.17%).

Among the Nifty constituents, top losers included Bharti Airtel, HUL, ONGC, Apollo Hospitals, and Tata Steel. Conversely, Power Grid Corporation, Adani Ports, UltraTech Cement, Cipla, and Grasim Industries emerged as the most significant gainers.