Indian equity markets closed lower on Friday following the Monetary Policy Committee (MPC) decision and global economic uncertainties. The Nifty dropped 0.21% to 23,366.70, while the Sensex fell 0.16% to 74,243.34. Analysts noted that the 23,450–23,550 range is a crucial resistance zone for the Nifty.
Experts highlighted that a sustained breakout above the resistance band could boost market sentiment, potentially leading to a recovery towards the 23,750–23,800 levels. They also emphasized the significance of the 23,250 level as a near-term support for market stability. Hindalco Industries, Wipro, and Trent were among the top losers in the Nifty index.
Furthermore, the broader markets saw a decline, with the Nifty MidCap index slipping by 0.35% and the Nifty SmallCap index by 0.06%. Sector-wise, IT and metal stocks showed weakness, while the media sector outperformed the market. The MPC’s decision to maintain the policy repo rate at 5.25% with a neutral stance amid global uncertainties impacted market sentiment.
The Reserve Bank of India introduced measures to enhance foreign inflows in domestic financial markets, such as raising investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). Additionally, they expanded the list of government securities under the Fully Accessible Route (FAR). Market experts observed that investors closely monitored policy signals and global cues, resulting in a subdued market closure.
