Sensex and Nifty Flat as Investors Await RBI Policy Outcome

KEY TAKEAWAYS:

Sensex rose 13.84 points while Nifty gained 10.95 points.
FIIs continued heavy selling, offloading equities worth ₹5,616 crore.
Investors are closely watching the RBI’s monetary policy decision.

MUMBAI: The Sensex and Nifty flat close on Thursday reflected a market caught between bargain buying and rising uncertainty. While benchmark indices managed to end in positive territory, investors largely avoided aggressive positions due to geopolitical concerns in West Asia, persistent foreign fund outflows and the upcoming RBI monetary policy announcement.

The muted performance signals that traders are waiting for clearer economic cues before making fresh bets, particularly on interest rates and liquidity conditions.

Sensex and Nifty Flat Despite Volatile Trading Session

Indian equities witnessed sharp swings throughout the day. The BSE Sensex moved nearly 737 points between its intraday high and low before settling at 74,360.01, up just 13.84 points.

The NSE Nifty followed a similar pattern, ending at 23,416.55 with a modest gain of 10.95 points.

The recovery from lower levels suggests investors are still willing to buy quality stocks at support zones. However, the absence of strong momentum indicates a lack of conviction ahead of key policy announcements.

Why Investors Remained Cautious

Several factors kept market sentiment restrained.

Foreign Institutional Investors (FIIs) continued their selling spree, pulling out more than ₹5,600 crore from Indian equities. Such sustained outflows often create pressure on benchmark indices and reduce risk appetite among domestic investors.

Geopolitical tensions in West Asia also remained a concern. Rising uncertainty in the region has increased fears of supply disruptions and inflationary pressures, prompting investors to adopt a defensive stance.

At the same time, elevated crude oil prices continue to pose risks for India’s import bill and inflation outlook, although Brent crude eased slightly during the session.

RBI Policy Decision Could Shape Market Direction

The RBI’s monetary policy announcement has emerged as the market’s biggest near-term trigger.

Investors are closely monitoring whether the central bank signals changes in interest rates, liquidity management or economic growth projections. Any policy surprise could influence banking stocks, borrowing costs and overall market sentiment.

The second-order effect is equally important. A supportive policy stance could encourage fresh investments and strengthen market confidence, while a cautious approach may keep volatility elevated in the coming weeks.

Winners and Losers in Thursday’s Trade

Among the major gainers were Titan, Eternal, ITC, Tech Mahindra, State Bank of India and ICICI Bank, which helped the indices recover from early losses.

On the losing side, Infosys, Bajaj Finserv, UltraTech Cement, HCL Tech and Adani Ports weighed on market performance.

The mixed trend across sectors highlights the market’s current stock-specific approach, where investors are focusing on company fundamentals rather than broad market momentum.

Global Signals Remain Mixed

Global cues offered little support to domestic markets.

Most Asian indices ended lower, reflecting investor concerns over economic growth and geopolitical developments. European markets traded mostly higher, while US equities had closed in negative territory in the previous session.

With foreign investors continuing to sell and global uncertainty still elevated, market participants are expected to remain selective until greater clarity emerges from the RBI and international developments.

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