Nifty focuses on Growth Inflation Outlook.

The market is closely watching the Reserve Bank of India’s (RBI) monetary policy announcement today, with most expecting the central bank to keep the repo rate unchanged at 6.5 percent. Market participants are also closely watching for the signals on future inflation and liquidity measures, and any unexpected rate cut, which could trigger a sharp rise in the stock market. If the RBI decides to keep the repo rate steady in today’s monetary policy, it would mark the tenth consecutive meeting with no change. The RBI may keep interest rates unchanged, but its forward guidance will be very important. The key will be how the RBI navigates between inflation control and growth revival in the current environment. A poll by Moneycontrol of 12 economists, bankers and fund managers shows that the consensus is for the RBI Monetary Policy Committee. To keep the key interest rates unchanged, this is consistent with the broader market sentiment that the central bank will prioritize managing inflation. Nifty closed above the 25,000 mark on Tuesday, 8 October signaling a potential short-term pullback. Traders are advised to create long positions above 25,080, with a stop loss at 24,940 and a target of 25,290. The RBI’s forward guidance on inflation, growth prospects, and liquidity conditions will be closely monitored for signals of future policy direction. Today’s RBI policy announcement comes in the backdrop of the U.S. The Federal Reserve recently cut its benchmark rate by 50 basis points. The federal funds target range has been brought to 4.75-5 percent. This move marks the beginning of the Feds easing cycle, aimed at countering the economic slowdown in the United States. If the RBI decides to keep the current repo rate unchanged, the markets may remain steady. Nifty Bank have also seen a 3-5 percent fall.