Cautious Markets Await RBI Policy Amid Global Uncertainties

Indian stock markets witnessed a cautious start on Wednesday as investors keenly awaited the policy announcement by Reserve Bank of India (RBI) Governor Sanjay Malhotra. The Nifty 50 index opened at 24,620.55, rising marginally by 9.45 points or 0.04%, while the BSE Sensex saw a slight dip, opening at 80,173.24, down 94.38 points or 0.12%.

Market analysts highlighted a prevailing wait-and-watch mood among investors ahead of the RBI's Monetary Policy Committee meeting outcome. Recent trading sessions have been marked by high volatility, with indices fluctuating in response to tariff-related pressures. Vikram Kasat from PL Capital noted that while Indian equity markets remained range-bound, volatility persisted with indices fluctuating as market participants awaited the RBI's policy decision. Meanwhile, silver prices made headlines, achieving a record Rs 1.51 lakh/kg in India and posting an 18.2% global monthly gain, driven by industrial demand, a weaker dollar, and safe-haven buying.

The broader market indices on NSE opened with gains; the Nifty 100, Nifty Smallcap 100, and Nifty Midcap 100 saw increases of 0.13%, 0.21%, and 0.42%, respectively. Sector-wise, Nifty Pharma and Nifty Auto led, each rising by over 1%, while Nifty Media also showed substantial gains. However, concerns lingered on the currency front, with the Indian Rupee standing at INR 88.7923 against the U.S. Dollar amid geopolitical concerns. Precious metals such as gold reached record levels due to global uncertainty.

In other Asian markets, optimism was noticeable, with most indices trading in the green. While Japan's Nikkei 225 dropped over 1%, other major indices like Taiwan's Weighted Index, Hong Kong's Hang Seng, and South Korea's KOSPI posted gains, reflecting a generally positive sentiment across the region.

(With inputs from agencies.)