India
Stock markets brace for RBI’s monetary policy decisions after slowdown in GDP growth | India News – Times of India
India’s gross domestic product (GDP) growth slowed to 5.4 percent in the second quarter of FY25, the slowest growth rate in two years. However, equity markets showed some recovery in the past week. The Sensex 30 and Nifty 50 indices collectively rose 1 per cent during the week, posting their second consecutive week of gains despite mixed market signals.
“The coming week will bring important data releases and events. Participants will first respond to GDP data released after the market on Friday. The primary focus will be on the RBI MPC’s monetary policy review, where policymakers’ interpretation of the GDP data and their position will be discussed. The interest rate trajectory will be critical,” Ajit Mishra, SVP, Research at Religare Broking Ltd, was quoted as saying by news agency ANI.
He also noted that high-frequency indicators including auto and cement sales, as well as HSBC Manufacturing and Services PMI data, are likely to drive market trends. Foreign inflows are also expected to remain an important factor influencing investor sentiment.
Foreign portfolio investors became net sellers in India for the second consecutive month in November, although the pace of sales slowed in the second half of the month.
The RBI’s monetary policy review meeting is scheduled from December 4 to 6. Stock prices have been volatile in recent weeks, with recent bearish trends linked to fund outflows, lower-than-expected second-quarter earnings from India Inc. and persistently high inflation.
The BSE benchmark Sensex closed at 79,746.24 points, up 702.50 points, while the Nifty ended at 24,131.05 points, reaching 216.90 points on Friday. This was higher than GDP data, which later showed India’s growth at 5.4 percent, below the RBI’s forecast of 7.0 percent.
Sensex is still nearly 6,000 points below its all-time high of 85,978 points.
