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Dalal Street Edges Lower as RBI Boost Yields to Fed Watch and Currency Jitters

Traders now look to the Fed decision, followed by India’s CPI, to gauge near-term direction.

Overview

  • Sensex and Nifty closed Friday at 85,712 and 26,186 after the RBI move, then opened slightly lower on Monday with the Nifty near 26,150 and the Sensex around 85,600.
  • The RBI cut the repo rate by 25 bps to 5.25% and outlined about Rs 1.45 lakh crore of liquidity via bond buys and dollar–rupee swaps, while trimming FY inflation guidance to 2% and lifting GDP growth to 7.3%.
  • Foreign investors extended net selling in early December as the rupee breached 90 to the dollar, though domestic institutions were net buyers, a mix that analysts say is pressuring sentiment.
  • Analysts highlight Nifty support near 26,050–26,000 with a broader 25,900–25,700 floor and see potential tests of 26,300–26,500, while Bank Nifty eyes 59,300–59,000 support and resistance around 60,000–60,300.
  • Stock-specific drivers include ICICI Prudential AMC’s IPO slated for Dec 12–16 and Meesho’s listing, IndiGo’s flight cancellations and fare-cap compliance, and Biocon’s plan to make Biocon Biologics a wholly owned unit with a fundraise of up to Rs 4,500 crore.