Indian Equities Slide On Thursday Ahead Of RBI’s Monetary Policy Decision
Markets consolidated in a range after the recent surge and ended almost unchanged. After the initial downtick, the Nifty future oscillated in a narrow band and finally settled at 21,033.85 levels. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein energy and pharma posted decent gains while FMCG and metal settled lower. Amid all, the market breadth was inclined on the advancing side, thanks to the upbeat midcap and smallcap pack.
The overbought reading in the index may result in further consolidation however the bias would remain on the positive side. We suggest maintaining focus on stock selection and using intermediate dips to gradually add quality names. Apart from the domestic factors, traders should keep a close eye on the performance of the US markets for cues.
Meanwhile, S&P Global Ratings has said that India will become the world's third-largest economy by 2030, as it forecasts the nation's GDP growth reaching 7 per cent in the 2026-27 fiscal year. It expects India will be the fastest-growing major economy in the next three years. Currently, the country is the fifth largest economy in the world behind the US, China, Germany and Japan.
In its Global Credit Outlook 2024, S&P saw a 6.4 per cent GDP growth in the fiscal year through March 2024 (2023-24) as compared to 7.2 per cent in the previous financial year. The growth rate will remain at 6.4 per cent in the next fiscal (2024-25) before climbing to 6.9 per cent in the next and 7 per cent in 2026-27.
Technically, the important key resistances placed in Nifty future are at 21088 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 21,108 - 21,188 levels. Immediate support is placed at 21,008 - 20,939 levels.
