The six-member Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das decided to keep the benchmark repo rate unchanged at 6.5% for the eleventh straight meeting, and maintain the monetary policy stance ‘Neutral’. The central bank, however, slashed the Cash Reserve Ratio (CRR) by 50 basis points (bps) to 4%. CRR cut of 50 bps to lead to infusion of Rs 1.16 lakh crore into the system, says RBI Governor Shaktikanta Das.
Additionally, Governor Shaktikanta Das revised the GDP growth forecast for FY25, lowering it to 6.6% from the earlier projection of 7.2%.
At 11:29 IST, the barometer index, the S&P BSE Sensex shed 45.21 points or 0.06% to 81,720.65. The Nifty 50 index lost 29.60 points or 0.12% to 24,678.80.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.14% and the S&P BSE Small-Cap index rallied 0.38%.
The market breadth was strong. On the BSE, 2,316 shares rose and 1,452 shares fell. A total of 153 shares were unchanged.
Buzzing Index:
The Nifty PSU Bank index gained 1.08% to 7,202.55. The index shed 0.15% in the past trading session.
UCO Bank (up 3.36%), Indian Overseas Bank (up 2.49%), Central Bank of India (up 2.01%), Punjab & Sind Bank (up 1.91%), Bank of Baroda (up 1.89%), Canara Bank (up 1.81%), Union Bank of India (up 1.80%), Punjab National Bank (up 1.52%), Bank of Maharashtra (up 1.10%) and Bank of India (up 0.96%) advanced.
Stocks in Spotlight:
Ramco Systems rallied 3.48% after the company has entered a partnership with Hanjin Information Systems and Telecommunication, a subsidiary of the Hanjin Group. Together, both the parties will enable the aviation organizations headquartered in South Korea to digitally transform their M&E and MRO operations.
Welspun Living added 1.45% after the company’s board approved the scheme of amalgamation between Welspun Home Solutions and Welspun Advanced Materials. Welspun Home Solutions is a subsidiary of Welspun Advanced Materials.
Global Markets:
Most of the Asian stocks advanced on Friday. All eyes are on the U.S. nonfarm payrolls report due in the day that may help shape the direction of the Federal Reserve's policy path later this month.
In Asia, key economic data releases include India's interest rate decision and Malaysia's foreign reserves. China's November foreign reserves data may also be released today.
US stock markets pulled back from record highs on Thursday as investors took a cautious approach ahead of the payrolls report. The S&P 500 declined 0.2%, the NASDAQ Composite fell 0.2%, and the Dow Jones Industrial Average dropped 0.6%. Technology stocks, a major driver of recent market gains, retreated, while economically sensitive sectors like energy, financials, and industrials also lost ground.
US initial jobless claims rose to 224,000 for the week ended November 30th, up from the previous week's revised figure of 215,000.
The upcoming US nonfarm payrolls report will be closely watched by investors and policymakers alike. A strong reading could reinforce expectations of economic recovery and support further normalization of monetary policy.
Meanwhile Bitcoin tumbled from record highs above the coveted $100,000 level, as it was slapped with heavy profit-taking.