Mumbai, Oct 7: Indian stock markets opened lower on Wednesday as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision.
The Sensex fell as much as 462.44 points, or 0.63 per cent, to 72,605.37, while the Nifty 50 declined 175.65 points, or 0.77 per cent, to 22,600. The Sensex and Nifty had opened at 72,965.38 and 22,690.45, respectively.
Most major sectors traded in negative territory. Consumer Durables fell 1.55 per cent, while Metal declined 1.34 per cent. Auto stocks dropped more than 1 per cent, while PSU Bank, Oil & Gas, Realty and FMCG stocks also remained under pressure.
Healthcare and pharmaceutical stocks were among the few gainers. The Nifty Pharma index rose 0.16 per cent, while the Nifty Media index gained 0.74 per cent.
Investors are closely watching the RBI’s policy decision for signals on interest rates, inflation and economic growth. The central bank’s comments on the rupee and the broader economic outlook are also expected to influence market sentiment.
The recent recovery in the Nifty has provided some support to investors, but analysts expect volatility to remain high. Rising crude oil prices and continued foreign portfolio outflows are among the key concerns for the market.
Brent crude has moved above $101 a barrel, increasing concerns over inflation and India’s import bill. At the same time, expectations of healthy corporate earnings and domestic liquidity are providing some support to equities.
Global markets also remained mixed. Asian equities traded cautiously as investors assessed US Treasury yields, geopolitical tensions and the latest performance of Wall Street.
Technical analysts expect the Nifty to remain volatile around the RBI policy announcement. The 22,800 level remains an important resistance zone, while 22,574 is being watched as a key support level.
Market participants will now closely track the RBI’s policy stance and its assessment of growth, inflation, the rupee and global economic risks.