Stock Market Today LIVE: Sensex Falls Over 400 Points, Nifty 50 Below 22,700 Ahead Of RBI Policy; Titan, Asian Paints Decline

Among sectors, Nifty Auto, Nifty Metals, Nifty PSU Banks, Nifty FMCG, Nifty IT and Nifty Oil & Gas reeled under selling pressure, while Nifty Media and Nifty Pharma were in the green.

Broader markets traded mixed, with the Nifty Smallcap 100 index gaining 0.15%, while the Nifty Midcap 100 index falling 0.43%

The Sensex opened 102.43 points, or 0.14%, lower at 72,965.38, while the Nifty 50 declined 85.65 points, or 0.38%, to open at 22,690.45. The Bank Nifty index opened at 54,958.15, down by 170.25 points, or 0.31%.

The focus of the market attention today will be on the monetary stance and the message from the RBI Governor. A 25 bp hike in policy rates is inevitable and already discounted by the market. What is not discounted is the monetary stance and the central bank’s view on the emerging growth-inflation dynamics. Therefore, the market’s response to the policy would be influenced by the Governor’s comments on the emerging scenario, said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

It is important to note that the interest rate differential between India and the US is at very low levels. This is unsustainable. A rate hike to preempt further capital flight has become unavoidable in the context of rising US yields and rising dollar. Therefore, stabilisation of the rupee also will be on top of the RBI Governor’s mind even though the focus will be on growth-inflation dynamics, he added.

The Indian rupee opened 3 paise lower at 96.45 against the US dollar as compared with its previous close of 96.42 level.

Foreign institutional investors (FIIs) net sold Indian equities worth Rs 2,961.30 crore, while Domestic institutional investors (DIIs) bought Rs 5,088.92 crore on October 6, according to the stock exchange data.

Titan Company share price will be in focus after the company reported its Q2 business update, with jewellery growth coming in below expectations even as the product mix and buyer trends offered some comfort.

JPMorgan cut its target price on the stock, while Citi highlighted the sharp acceleration in studded jewellery as a potential margin positive.

Citi maintained its ‘Buy' rating on Titan with a target price of Rs 5,700. Morgan Stanley retained its ‘Overweight' rating with a target of Rs 5,483, while JPMorgan maintained ‘Overweight' but lowered its target price to Rs 5,540 from Rs 5,650.

The level of 22,800 remains the immediate resistance zone for Nifty 50. 

“A sustained breakout and close above this level could strengthen the recovery momentum and pave the way for a move towards the crucial 23,000 mark. The 23,000 level is likely to remain a significant hurdle, and a decisive breakout above it would be important for the broader trend to turn more positive,” said Ponmudi R, CEO of Enrich Money. 

On the downside, 22,600 remains the immediate support, followed by 22,400. A decisive break below 22,600 could weaken the ongoing recovery and bring the lower support levels back into focus, he added.

“Momentum indicators have also shown a marginal improvement, suggesting some easing in the recent downside pressure. The near-term technical outlook has improved to cautiously positive, although the broader trend remains under pressure. Sustained trading above 22,800, followed by a decisive breakout above 23,000, would be crucial to confirm a stronger and more sustainable recovery,” he said.

Gold prices held gains amid a decline in bond yields eased pressure on the US Federal Reserve to hike interest rates this month. Spot gold price was flat at $4,167.05 an ounce, while silver price was steady at $61.34.

The Reserve Bank of India (RBI) will announce its fourth bi-monthly monetary policy for FY27 today. Analysts expect the RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) to raise the benchmark repo rate by 25 basis points to 5.50% from 5.25%, where it has remained for nearly 10 months. However, Street is divided on the stance.

US stock market ended higher on Tuesday, with the S&P 500 and Nasdaq posting all-time closing highs, supported by steady crude oil prices and easing Treasury yields.

The Dow Jones Industrial Average gained 253.14 points, or 0.49%, to 51,521.04, while the S&P 500 rallied 45.00 points, or 0.58%, to 7,818.95. The Nasdaq Composite closed 122.48 points, or 0.45%, higher at 27,599.79.

Asian markets traded mixed on Wednesday. Japan’s Nikkei 225 eased 0.12%, while the Topix rose 0.12%. South Korea’s Kospi gained 0.44% and the Kosdaq slipped 1.21%. Mainland China markets remain closed for a holiday.

The trends on Gift Nifty also point to a negative start for the Indian benchmark indices. Gift Nifty was trading around 22,670, indicating a discount of nearly 125 points to the previous close of Nifty futures.

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, tracking mixed global market cues. Investor sentiment is likely to remain cautious ahead of the Reserve Bank of India’s (RBI) monetary policy decision, with focus shifting to the central bank’s policy stance and forward guidance.