Stock Market Opening: Nifty, Sensex Open in Red, THESE Stocks To Remain In Focus Ahead Of RBI MPC Announcement

Stock Market Opening Bell: Nifty and Sensex opened in red on Wednesday, April 9, a day after showcasing a bullish trend post Black Monday crash. Sensex declined over 400 points, whereas Nifty 50 was below 22,400 points.

The stock market opened on a weak note ahead of the Reserve Bank of India's Monetary Policy Committee (MPC) announcement today. Several experts have hinted towards a 25 basis points rate cut by the RBI MPC, under the leadership of RBI Governor Sanjay Malhotra.

The Indian stock market revived on Tuesday, a day after the market crash created panic among investors. Nifty ended Tuesday's session comfortably above 22,500 as the bulls took back control on Dalal Street. Whereas, Sensex rallied 1,085 points. The positive sentiment among Indian stock market investors was in tandem with a positive wave in the Asian markets, which opened higher after taking a beating on Monday.

Stock market investors will be keenly observing the RBI MPC announcement today. There are chances that the RBI MPC will go for a 25 basis points (bps) rate cut today amid cooling inflation and possibility of higher GDP growth rate.

According to GoodReturns RBI Monetary Policy Poll, economists have indicated towards a 25 basis points rate cut on Wednesday amid market speculation and geopolitical certainty due to United States President Donald Trump trade tariffs announced earlier. Due to Trump's tariffs, the Indian stock market witnessed one of its worst performance on Monday due to fear of trade wars. However, experts are apprehensive about the impact of Trump's trade policy on the global economy and India's rate cut targets.

"Market is expected to remain volatile until things become clearer on US tariff front, while stock specific action would continue on the back upcoming Q4 earnings and management guidance. We suggest investors to avoid globally exposed sectors like IT, pharma, metals and rather focus on domestic economy-linked stocks as they are likely to offer relative stability in the current uncertain environment," said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Stocks To Remain In Focus Today

Banking Sector Stocks

Top banking sector stocks including HDFC Bank, ICICI Bank, ICICI Bank, Kotak Bank, IndusInd Bank, Federal Bank, Yes Bank, RBL Bank, etc will remain in focus today as RBI's decision on repo rate will directly impact their lending capacity.

PSU bank sector stocks like State Bank of India, Bank of Baroda, Canara Bank, Union Bank, Central Bank of India, etc will also remain in focus today.

FMCG Sector Stock

A potential RBI repo rate cut would help the RBI in stimulating economic growth by making borrowing cheaper for individuals and businesses, leading to increased spending and investment. RBI MPC decision on repo rate can also impact movement of FMCG sector stocks, including ITC, Godrej, Hindustan Unilever, Dabur, Nestle, etc , today.

NBFC

Decision on RBI MPC can also impact NBFC stocks price movement including that of Bajaj Finance Limited, Shriram Transport Finance Company, and Cholamandalam Investment and Finance Company Limited.

Apart from RBI MPC, several developments related to Trump tariffs announcements will continue to send shockwaves across the stock market in India and across the world. On Tuesday, America announced additional tariffs on China for the third time.

On Tuesday, White House Press Secretary Karine Jean-Pierre announced an additional 104% tariff on certain Chinese goods. The development has come days after China refused to initiate negotiations with America after tariffs announcement on April 2 and imposed 34% tariffs on US imports.