Indian Markets Open Firm Ahead Of RBI Policy; Tata Investment, Pfizer, Shriram Finance Gain Ground

Indian equity markets have opened on a positive note as investors await the rate decision from India’s central bank. The street is expecting the Reserve Bank of India (RBI) to maintain a status quo with a dovish tone, but some expect a 25 bps rate cut.

At 09:40 a.m. IST, the Nifty 50 traded 59 points higher at 24,670, while the Sensex was up 182 points at 80,450. Broader markets were mixed, with the Nifty Midcap index rising 0.2% and Smallcap index trading flat.

The retail sentiment on Stocktwits for the Nifty remained ‘bearish’ at market open. 

Stock Watch

Sectorally, barring IT and PSU banks, rest of the sectors traded in the green, led by media, pharmaceuticals, real estate and autos. 

Shriram Finance rose over 2% as news reports suggest that Japan's MUFG is looking to buy a 20% stake in the company. 

Tata Motors rose 1% as its long-awaited demerger into passenger and commercial vehicle units takes effect today. Tata Investment continues its bull run, with 4% gains in opening trade. Tata Sons, the holding company of Tata Group, holds a 0.10% stake in Tata Investment and has missed a regulatory deadline to become publicly listed as per RBI norms for NBFCs. 

Pfizer India shares surged 5% after its US parent company received a three-year reprieve from tariffs on pharmaceutical imports imposed by US President Donald Trump.

Lupin gained 3% following a USFDA nod for Rivaroxaban oral suspension drug, used to treat venous thromboembolism (VTE).

RateGain shares fell 3% as the company is considering acquiring Sojern and its subsidiaries through its wholly-owned subsidiary for $250 million.

Newgen Software rose 2% on securing multiple deals across the UK, US, Ghana, and Dubai, with total contract wins exceeding $9 million. RITES too gained over 2% following a pact with Etihad Rail. 

Atlantaa shares surged 20% after the company entered into an agreement with IRCON International for undertaking a contract worth ₹2,485 crore.

Stock Calls

Analyst Vinayak Gautam shared three stock recommendations for Wednesday with a 1-week timeframe:

JSW Steel: Buy at ₹1,142, with a target price of ₹1,164, and stop loss at ₹1,130

RITES: Buy at ₹246.04, with a target price of ₹254, and stop loss at ₹243

Agi Infra: Buy at ₹1,260, with a target price of ₹1280, and stop loss at ₹1,250

Markets: The Road Ahead

From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup. 

Analyst Ashish Kyal said the Nifty index is managing to show reduced momentum on the downside, but has yet to see a close above the prior high. For Wednesday, a break below 24,580 can take prices to 24,520-24,480 levels. A close above Gann levels of 24,728 on a 15-minute timeframe is required to resume a positive trend to 24,780-24,820. A move is expected 10 minutes after the RBI policy decision.

Prabhat Mittal identified Nifty support at 24,450 with resistance at 24,850. For Bank Nifty, he sees support at 54,300 and resistance at 54,900.

Global Cues

Globally, Asian markets traded mostly higher, while crude oil prices held steady. 

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