RBI policy keeps markets flat, PSU Banks rally on CRR cut

The domestic share market indices ended marginally lower in the volatile session on Friday, as the Nifty settled below 24,700 amid volatility, driven by the RBI’s decision to keep the repo rate unchanged and cut the CRR for liquidity improvement. At close, the Sensex was down 56.74 points or 0.07 percent at 81,709.12, and the Nifty was down 30.60 points or 0.12 percent at 24,677.80. For the week, BSE Sensex and Nifty added more than 2 percent each.
Bajaj Auto, Axis Bank, SBI Life, Tata Motors, Maruti Suzuki were the top gainers on the Nifty, while losers included Adani Ports, Cipla, Bharti Airtel, HDFC Life and Asian Paints. On the sectoral front, except IT and media, all other indices ended in the green with auto, metal, FMCG, telecom, PSU Bank up 0.3-1 percent. BSE Midcap index was up 0.3 percent and smallcap index was up 0.6 percent.
Rupee Close:
On 06 Dec'24,the Indian rupee settled on a flat note and appreciated by just 1 paisa to close at 84.70  against the U.S. dollar on Friday as the Reserve Bank of India left the repo rate unchanged at 6.5% in its monetary policy decision
The Reserve Bank of India on Friday  kept its key interest rate unchanged, citing inflation risks, but cut the Cash Reserve Ratio that banks are required to park with the central bank, boosting money with lenders to support a slowing economy.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying though benchmark indices concluded on a flattish trend, Indian broader indices displayed optimism as the RBI acknowledged the downward growth trend while last-mile inflation persisted. By lowering the CRR and injecting Rs 1.16 lakh crore into the financial system, the RBI aims to stimulate economic growth amid increased liquidity. The overall market exhibited a mixed outlook, reflecting a cautious yet resilient stance, with sector rotation and specific stock movements shaping market sentiment.
Market experts have recommended five shares to buy- ICICI Bank Ltd, KFin Technologies Ltd, Godrej Consumer Products Ltd, Hindustan Aeronautics Ltd and Life Insurance Corporation of India.

(Business Correspondent)