By Bharath Rajeswaran
(Reuters) -Indian shares were muted on Friday, ahead of the Reserve Bank of India’s (RBI) monetary policy decision, in which the central bank is widely expected to cut interest rates to support the country’s slowing economic growth.
The Nifty 50 eased 0.05% to 23,592.25, as of 9:36 a.m. IST, while the BSE Sensex was almost flat at 78,030.1.
Eight of the 13 major sectors logged losses. The broader, more domestically focussed smallcaps and midcaps shed 0.6% and 0.2%, respectively.
The RBI is widely expected to deliver its first rate cut since May 2020 on Friday, a week after India’s federal government cut personal income tax to boost consumption.
The rate decision is due at 10:00 a.m. IST.
“Markets expect a rate cut, which will help money supply in the economy, strengthen liquidity, encourage borrowing and boost consumer demand,” said Ajay Garg, chief executive of SMC Global Securities.
“However, the falling rupee is a trigger that could influence the RBI’s decision, as further cuts can put pressure on the Indian rupee and increase foreign outflows from the country.”
Expectations of the rate cut alongside persistent portfolio outflows have hurt the rupee this week, with the currency hitting an all-time low on Thursday.
Foreign portfolio investors have offloaded Indian shares worth $9.3 billion in 2025 so far.
The Nifty 50 is down about 4.4% since the previous policy meeting on December 6, hurt by slowing growth and corporate earnings.
The IT index was 0.7% lower after gaining 2.3% in the previous four sessions.
Among individual stocks, telecom operator Bharti Airtel rose 3.5% after posting a higher quarterly profit due to a one-time gain and tariff hikes.
Biscuit maker Britannia Industries gained 3% after beating third-quarter profit estimates.
Top motorcycle maker by volume Hero MotoCorp rose 1% after reporting a bigger-than-expected rise in quarterly profit on higher mid-level motorcycle sales.
($1 = 87.5610 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala, Rashmi Aich and Eileen Soreng)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.
