Gift NIFTY indicates weak opening for Indian markets ahead of RBI's monetary policy decision

The Indian equity benchmarks are set to open lower on Wednesday, October 7, as indicated by NIFTY futures traded at Gift City in Gandhinagar. Gift NIFTY futures declined 112 points to 22,683 amid weak cues from Asian markets after crude bounced back above $100 per barrel.

The benchmarks rose for a second straight session on Tuesday as investor sentiment improved after crude oil prices dropped below $100 per barrel.

The SENSEX surged 685 points to close at 73,068 and NIFTY50 index climbed 220 points to close at 22,776 on account of short covering aftermarkets went into oversold zone.

Meanwhile, Asian markets were trading lower defying record closing in the US markets after crude prices surged in global markets.

Japan's Nikkei fell 0.81%, Hong Kong's Hang Seng index dropped 0.94% and South Korea's KOSPI declined 1.2%.

Brent futures rose 93 cents, or 0.92%, to $101.51 a barrel.

Overnight, US stocks ended at record highs as crude oil declined, and bond yields eased.

S&P 500 index advanced 0.6% to an all-time closing high of 7,818.93 and tech heavy Nasdaq advanced 0.45% to a record closing high of 27,599.79.

Back home, Reserve Bank of India's Monetary Policy Committee (MPC) will announce its decision on interest rates later in the day and it is expected to raise benchmark interest rate by at least 25 basis points as inflationary pressures build and global central banks turn more hawkish, according to economists and bankers.

A rate hike would be the first since February 2023, when the RBI raised the repo rate by 25 basis points to 6.50%.

The central bank subsequently kept rates unchanged through 2023-24 before starting an easing cycle in 2025. The repo rate currently stands at 5.25%.

Foreign institutional investors sold shares worth ₹2,961.30 crore on Tuesday while domestic institutional investors bought shares worth ₹5,088.92.

Rate sensitive realty, auto, banking and financial services shares will be in focus as RBI's MPC is widely expected to raise interest rates to counter spiralling inflation.

Titan in its quarterly business update said that its total business in second quarter rose 22% and jewellery business advanced 21%

The company's watches business jumped 30% and the company added 34 new stores during the quarter.

Kalyan Jewellers said that its revenue from Indian operations led by robust operating momentum on the ground with healthy same-store-sales-growth across all the key markets in the country despite the high base due to the strong Navratri sales rose 27% in Q2.

The recently concluded quarter recorded same-store-sales-growth of approximately 20%, the company added.