Mumbai Stock Market Falls as Investors Await RBI Governor Shaktikanta Das’s Announcement
The stock market in Mumbai opened on a bearish note today as investors awaited the Reserve Bank of India’s (RBI) monetary policy announcement. The Sensex opened 242.27 points lower at 79,225.74, while the Nifty slipped by 74.75 points to open at 24,222.75.
Focus on RBI Governor’s Comments
Investors are keenly focused on RBI Governor Shaktikanta Das’s comments regarding inflation and GDP growth. The central bank is expected to maintain the repo rate at 6.5 per cent for the ninth consecutive meeting.
Market Performance
Among the Nifty companies, 12 advanced while 37 declined. Cipla, Tata Motors, ITC, Titan, and Dr. Reddy’s were the top gainers, whereas Infosys, ONGC, JSW Steel, Shriram Finance, and Wipro were the major losers.
Expert Opinion
Banking and market expert Ajay Bagga commented, “US markets ended lower on Wednesday. Asian markets are lower on Thursday. The risk-off sentiment is proving to be a continued drag despite the Bank of Japan attempts to bolster confidence. With a weekly expiry day, Indian futures are pointing to a weak day.”
Gold and Silver Prices
Gold prices in India stood at Rs 68,850 per 10 grams for 24-carat gold as of August 8, marking a 1.82 per cent drop over the past week. Silver is priced at Rs 789.5 per 10 grams.
Institutional Investments
On the institutional front, foreign institutional investors (FIIs) sold shares worth Rs 3,314.76 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 3,801.21 crore on August 7, 2024.
Global Market Trends
Global crude oil prices saw modest gains, with WTI crude at USD 75.56 and Brent crude at USD 78.65. Asian markets are trading lower, with the Asia Dow down 0.24 per cent, Japan’s Nikkei 225 declining 1.41 per cent, Hong Kong’s Hang Seng down 0.76 per cent, and China’s Shanghai Composite falling 0.09 per cent. In the U.S., stocks ended lower, with the Nasdaq Composite dropping 1.05 per cent to 16,195.85, the S&P 500 falling 0.77 per cent to 5,199.50, and the Dow Jones Industrial Average decreasing 0.60 per cent to 38,763.45.
As the day progresses, investors will closely watch the RBI Governor’s comments for insights into future monetary policy actions, especially concerning inflation and economic growth prospects.
Doubts Revealed
Mumbai Stock Market -: The Mumbai Stock Market is a place where people buy and sell shares of companies. It’s like a big marketplace for stocks.
RBI -: RBI stands for Reserve Bank of India. It is the main bank of India that controls all other banks and manages the country’s money.
Shaktikanta Das -: Shaktikanta Das is the Governor of the Reserve Bank of India. He makes important decisions about India’s money and economy.
Sensex -: Sensex is a number that shows how well the top 30 companies in the Mumbai Stock Market are doing. If the number goes up, it means the companies are doing well.
Nifty -: Nifty is another number that shows how well the top 50 companies in the Mumbai Stock Market are doing. It’s similar to Sensex but includes more companies.
Inflation -: Inflation means that the prices of things we buy, like food and clothes, are going up. It makes things more expensive over time.
GDP growth -: GDP growth means how much more goods and services a country is producing compared to before. It’s a way to see if the country’s economy is getting bigger.
Cipla -: Cipla is a big company in India that makes medicines.
Tata Motors -: Tata Motors is a company in India that makes cars and trucks.
ITC -: ITC is a company in India that makes many things like cigarettes, food, and personal care products.
Titan -: Titan is a company in India known for making watches and jewelry.
Dr. Reddy’s -: Dr. Reddy’s is a company in India that makes medicines.
Infosys -: Infosys is a big company in India that provides technology and consulting services.
ONGC -: ONGC stands for Oil and Natural Gas Corporation. It is a company in India that explores and produces oil and gas.
JSW Steel -: JSW Steel is a company in India that makes steel, which is used to build things like buildings and cars.
Shriram Finance -: Shriram Finance is a company in India that provides financial services like loans and insurance.
Wipro -: Wipro is a big company in India that provides technology and consulting services.
Gold prices -: Gold prices tell us how much gold costs. People often buy gold as an investment or to make jewelry.
Silver prices -: Silver prices tell us how much silver costs. Like gold, people buy silver for investment or to make jewelry.