Stock Market Today: The Indian stock market opened on a cautious note today, December 6, with the domestic indices trading flat as investors awaited the Reserve Bank of India’s (RBI) monetary policy outcome. Scheduled to be announced at 10 AM, the policy decision is expected to maintain the status quo on the repo rate. However, market participants are speculating on a potential reduction in the Cash Reserve Ratio (CRR).
RBI’s Monetary Policy in Focus
According to an SBI research report, no repo rate cuts are anticipated during the current fiscal year. The report suggests the first rate cut and a shift in monetary stance are more likely in April 2025. It further emphasized that the RBI should avoid knee-jerk reactions to second-quarter growth figures, especially as inflation remains elevated.
Market Performance
At 09:26 AM, the S&P BSE Sensex was trading at 81,709.08, down 57 points or 0.07%, while the Nifty50 index stood at 24,693.30, slipping by 15 points or 0.06%.
Here’s a snapshot of the top-performing and underperforming stocks:
| Top Gainers (Nifty50) | % Change |
|---|---|
| Trent | +1.6% |
| Bajaj Auto | +1.2% |
| Hero MotoCorp | +1.0% |
| ITC | +0.8% |
| Eicher Motors | +0.7% |
| Top Losers (Nifty50) | % Change |
|---|---|
| TCS | -1.4% |
| L&T | -1.1% |
| Wipro | -1.0% |
| Tata Motors | -0.9% |
| Infosys | -0.7% |
Stocks in News
- Spandana Sphoorty Financial (SSFL):
Shares dropped 3% after ICRA downgraded its outlook to negative from stable, while reaffirming its rating at ICRA A+ (negative) for long-term loans and non-convertible debentures. - FSN E-Commerce Ventures (Nykaa):
Shares were down 1.7% to ₹164.60 on the BSE following the resignation of CEO Nihir Parikh, effective December 5, 2024. The company cited personal commitments as the reason for his departure.
Broader Market Trends
While the benchmark indices remained flat, the broader markets showed positive momentum:
- BSE MidCap index rose 69 points or 0.14%, reaching 47,569.10.
- BSE SmallCap index climbed 208 points or 0.37%, trading at 56,916.01.
Analysis and Outlook
Market sentiment is currently subdued, with investors adopting a wait-and-watch approach ahead of the RBI’s policy decision. While expectations of a repo rate cut are low, any surprise announcement regarding CRR adjustments could lead to immediate market reactions.
The caution is also fueled by ongoing concerns about inflation, as highlighted by experts. Persistent inflationary pressures are limiting the RBI’s room to maneuver, despite some signs of economic recovery.
Key Takeaways for Investors
- Monitor the RBI’s policy outcome for clarity on future rate hikes or cuts.
- Keep an eye on sectoral movements; IT and financial services are showing mixed performance.
- Stocks like Trent, Bajaj Auto, and Hero MotoCorp may offer opportunities given their positive momentum.
Global Market Cues
On the global front, mixed signals from US markets and geopolitical developments are adding to market uncertainty. The Federal Reserve’s stance on interest rates will also influence investor sentiment in the coming weeks.
