Indian Shares End Flat Amid Global Cues and RBI Policy Shift

A report reveals that Indian stocks closed lower as market gains faded, influenced by mixed global signals and a shift in the Reserve Bank of India's policy stance. Investors are on edge ahead of crucial U.S. inflation data and Federal Reserve meetings.

Date: 09-10-2024

AI Rating: 5

The report indicates several key factors that could impact stock prices in the Indian market. Firstly, the Reserve Bank of India's (RBI) decision to maintain the repo rate at 6.50% while adopting a 'neutral' stance implies potential future rate cuts. This suggests a shift in monetary policy that may have positive implications for market liquidity and consumer spending.

However, significant risks to inflation, as highlighted by RBI Governor Shaktikanta Das, could dampen investor sentiment. These include adverse weather events, ongoing geopolitical conflicts, and rising commodity prices, which can lead to increased operational costs for companies and reduce profit margins.

The S&P/BSE Sensex and NSE Nifty indices fell by 0.21% and 0.12% respectively, indicating a reaction to these mixed signals. Major stocks like Hindustan Unilever, Reliance Industries, and ONGC experienced declines of 1-3%, while companies like Tech Mahindra and Cipla saw gains, showcasing sector-specific responses to the current market conditions.

Furthermore, global cues are mixed, with the dollar strengthening against expectations of more aggressive rate cuts by the Federal Reserve, which could affect foreign investment flows into the Indian markets. The prolonged losses in gold prices and fluctuations in oil prices contribute to the overall uncertainty.

Stocks: HINDUNILVR RELIANCE ONGC NESTLEIND ITC TECHM SBIN TATAMOTORS Trent CIPLA