Gift Nifty Points to Flat Opening for Sensex, Nifty on Wednesday

Mumbai, Oct 6: Gift Nifty signals a flat to marginally lower opening for Indian shares on Wednesday. The front-month contract was last seen trading at 22,761.00, down 13 points, or 0.06 per cent, from its previous close of 22,774. This is about 15 points below the Nifty 50’s Tuesday close of 22,776.10, indicating that the index may open near the flat line after two straight sessions of gains and ahead of the Reserve Bank of India (RBI)’s rate decision. 

The front-month futures contract opened at 22,649 on Tuesday and fell to a low of 22,616 in the morning. It then climbed steadily to a high of 22,824 around midday and stayed between roughly 22,750 and 22,800 for most of the afternoon. The contract moved in a range of 208 points during the session. 

RBI Seen Raising Rates on Wednesday 

The RBI’s Monetary Policy Committee (MPC) will announce its decision at 10 am on Wednesday, followed by Governor Sanjay Malhotra’s press conference at noon. The repo rate has stayed at 5.25 per cent for four consecutive reviews after 125 basis points of cuts in 2025. Economists and bankers expect a hike of at least 25 basis points, which would be the first since February 2023, when the RBI raised the rate to 6.50 per cent. Retail inflation was 4.82 per cent in August, above the 4 per cent target for a third straight month, while global central banks have turned more hawkish, and the rupee has weakened about 6 per cent this year. With a hike widely expected, investors will focus on the Governor’s guidance on what comes next. 

Asian Markets 

Most Asian markets traded higher on Tuesday. Japan’s Nikkei index rose 1.05 per cent to 70,683.98, while Hong Kong’s Hang Seng gained 1 per cent to 24,280.56 and Singapore’s Straits Times added 0.66 per cent to 5,701.54. Australia’s ASX 200 was up 0.57 per cent at 8,735.7, Thailand’s SET rose 0.37 per cent to 1,582.22 and Taiwan’s index gained 0.22 per cent to 49,822.55. South Korea’s Kospi was the lone decliner among the markets tracked, falling 0.89 per cent to 6,941.39, while mainland Chinese markets stayed shut for the National Day holiday and reopen on October 8. 

Oil Prices 

Crude oil prices fell sharply on Tuesday after the Group of Seven (G7) countries decided to release 100 million barrels of crude oil and petroleum products from emergency reserves, while exports from West Asia also increased. Brent crude declined 2.08 per cent to USD 98.23 per barrel, slipping below the key psychological USD 100 mark, and WTI crude fell 2.15 per cent to USD 87.51. Murban crude was down 3.92 per cent at USD 104.81, heating oil fell 3.31 per cent to USD 4.395, and natural gas edged up 0.23 per cent to USD 3.073. As most of India’s oil imports come from the Middle East, Brent trading below USD 100 eases some of the concern over imported inflation. 

Market Wrap-Up 

The Sensex and Nifty closed higher for the second consecutive session on Tuesday as crude prices fell and investors positioned ahead of the RBI decision. The Sensex rose 685.34 points, or 0.95 per cent, to 73,067.81. The Nifty 50 gained 220.35 points, or 0.98 per cent, to close at 22,776.10, taking its two-day gain to 354.15 points, or 1.58 per cent. Short covering from oversold levels, easing crude and positive quarterly business updates supported the rise. 

Trent (TRENT), Kotak Mahindra Bank (KOTAKBANK), Hindustan Unilever (HINDUNILVR), HDFC Life Insurance (HDFCLIFE) and SBI Life Insurance (SBILIFE) were the top gainers on the Nifty, while Reliance Industries (RELIANCE), Kotak Mahindra Bank and Trent were among the top movers on the Sensex. Coal India (COALINDIA), Tech Mahindra (TECHM), Max Healthcare Institute (MAXHEALTH), ITC (ITC) and Apollo Hospitals Enterprise (APOLLOHOSP) were the top laggards on the Nifty. 

Most sectoral indices ended in the green, with private banks, consumer durables, energy and pharma stocks gaining, while the Nifty IT index closed lower. 

Sources

• nseix.com
• NSE
• BSE
• www.cnbc.com
• www.oilprice.com