The stock markets experienced a marginal decline on Friday, with the Sensex and Nifty closing lower after five consecutive days of gains, following the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting and its cautious economic outlook.
The Sensex retreated 56.74 points or 0.07 per cent to close at 81,709.12, while the Nifty 50 slipped 30.60 points or 0.12 per cent to 24,677.80. Despite the day’s modest pullback, the market maintained an overall positive sentiment, driven by the RBI’s strategic liquidity measures and economic support initiatives.
Top gainers for the day included Tata Motors, which surged 3.21 per cent, followed by Bajaj Auto at 2.34 per cent, Axis Bank at 1.50 per cent, BPCL at 1.28 per cent, and Dr Reddy’s Lab at 1.10 per cent. Conversely, top losers were Adani Ports (-1.51 per cent), Cipla (-1.42 per cent), Bharti Airtel (-1.09 per cent), HDFC Life (-1.08 per cent), and IndusInd Bank (-0.99 per cent).
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The RBI’s MPC meeting was a focal point for market participants. Vaibhav Porwal, Co-Founder of Dezerv, highlighted the key takeaways: “Despite concerns of a slowing economy, the RBI is confident about growth revival, citing encouraging signs from high-frequency indicators like rural area recovery and strong festive demand.”
The central bank’s decision to reduce the Cash Reserve Ratio (CRR) aims to inject additional liquidity into the banking system. “By lowering the CRR and injecting ₹1.16 lakh crore into the financial system, the RBI aims to stimulate economic growth amid increased liquidity,” noted Vinod Nair, Head of Research at Geojit Financial Services.
Prashanth Tapse from Mehta Equities observed that “Markets have been rising for the past five trading sessions, and hence a small breather was expected. With RBI springing no major surprise in its credit policy announcement, investors booked profit in select frontlines.”
The broader market indices showed resilience, with midcap and smallcap segments gaining 0.44 per cent to 0.85 per cent. Ajit Mishra from Religare Broking recommended a “buy on dips” strategy, emphasizing selective stock picking and highlighting promising opportunities in broader indices.
Technical analysts provided additional insights. Deepak Jasani from HDFC Securities noted that the Nifty formed a small red candle on the daily chart, suggesting a pause after recent gains. He indicated potential upside targets around 24,857-24,882 and later 25,084 in the near term.
The market also took note of the RBI’s revised economic projections. The central bank lowered its GDP growth forecast for the financial year while raising inflation projections, reflecting a cautious economic stance.
Looking ahead, market participants are awaiting the November Consumer Price Index (CPI) data, scheduled for release on December 12. The October inflation rate of 6.21 per cent, driven by rising food and vegetable prices, has added complexity to the economic outlook.
Manish Goel from Equentis Wealth Advisory Services emphasised the broader economic context, pointing to potential positive developments such as Fadnavis’ return as Maharashtra Chief Minister and the World Bank’s $188.28 million loan approval for the state, which could drive growth in infrastructure, real estate, and renewable energy sectors.
The day’s trading saw 4,088 stocks traded on BSE, with 2,399 advancing, 1,590 declining, and 99 remaining unchanged. Additionally, 233 stocks hit 52-week highs, while 13 touched 52-week lows.
