Indian benchmark indices flat after RBI keeps policy rates unchanged

Mumbai: Indian benchmark indices Nifty and Sensex remained flat following the Reserve Bank of India's decision to maintain the repo rate at 6.5 pc for the seventh consecutive policy meeting.

Additionally, the central bank upheld its forecasts for gross domestic product (GDP) and Consumer Price Index (CPI) inflation for fiscal year 2024-25 (FY25).

The Sensex concluded at 74,248, registering a marginal uptick of 21 points, while the Nifty50 closed unchanged at 22,514 during Friday's trading session. Notably, gains in stocks like Kotak Bank, ITC, HDFC Bank, Bajaj Finserv, ICICI Bank, IndusInd Bank, and SBI helped cushion the downside.

"Investors are closely monitoring the U.S. non-farm payroll numbers for March, expecting a rise of 200,000 jobs, with the unemployment rate likely to remain steady at 3.9%. U.S. stock index futures recovered slightly after a decline on Thursday, driven by hawkish Fed comments and Middle East tensions," says Varun Aggarwal, founder Profit Idea.

In the Nifty 50 list, 21 shares were closed in green while the 28 stocks declined during the Friday's trading session. In the broader markets, the BSE MidCap and SmallCap indices continued their outperformance, both recording gains of 0.5% each. Sector-wise, the Nifty Realty index emerged as the top gainer, advancing by 1.5%, followed by the Nifty Bank, which rose by 0.9%. Conversely, the Nifty IT sector witnessed a decline of 0.5%.

Globally, shares retreated amid geopolitical tensions, keeping crude oil prices above $90 per barrel. The MSCI All Country stock index declined by 0.3%, easing from its peak reached on March 21. Similarly, the STOXX index of 600 European companies dropped by 1.2%.

Federal Reserve Chair Jerome Powell's recent remarks and a cooling U.S. services sector have fueled speculation about the timing and pace of interest rate adjustments. However, Minneapolis Fed President Neel Kashkari's more cautious stance on rate cuts added to the uncertainty.