Sensex, Nifty trade on muted note ahead of RBI MPC outcome

New Delhi: Domestic equity markets kicked off Wednesday's session on a muted note as traders remained on the sidelines ahead of RBI's money policy decision.

Dalal Street participants keenly awaited the RBI's monetary policy outcome with guidance for the path trajectory of the rate hikes in the near term. Meanwhile, weaker global cues dented sentiments.

BSE Sensex was trading 15 points or 0.02% lower at 62,611.32 at 9.20 am. Its NSE's peer Nifty50 shed a little more than 6 points or 0.03% to trade at Rs 18,636.60 at the same time.


Contrary to headline peers, broader markets were trading in the green as BSE midcap and smallcap indices rose in early trade. However, the fear gauge, India VIX, was at around 14.03 levels.

On the sectoral front, IT and auto stocks traded on a weak note. There was some buying interest in PSU banks, FMCG and pharma stocks in the opening hours.

NPTC, Tata Motors, ONGC, Wipro, TCS and Kotak Mahindra Bank led the losers in Nifty50 pack, whereas Asian Paints, BPCL, Cipla, L&T, Tata Consumer and SBI Life provided some support.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said talks of longer-than-expected recession have again surfaced and negative comments from influential voices like Jamie Dimon are impacting sentiments.

"In such a scenario there are no positive triggers that can take the market much higher from here," he added. "Since India’s growth resilience looks impressive the market is unlikely to dip sharply."

Oil fell for a fourth day as warnings from major US banks of a tough outlook for 2023 stoked concern over demand prospects and dented appetite for risk assets including commodities.

Asian investors extended a sell-off across global markets Wednesday while oil held losses on growing fears Federal Reserve monetary tightening will tip the US economy into recession.