Sensex, Nifty open higher ahead of RBI’s rate decision; Paytm falls 7%

Benchmark stock market indices opened higher on Thursday amid high volatility ahead of the Reserve Bank of India’s rate announcement at 10 am.

The S&P BSE Sensex was up 194.11 points to 72,346.11 at 9:17 am, while the NSE NIfty50 gained 59.30 points to trade at 21,988.85. The broader market indices also opened the day on a positive note.

Among sectoral indices, heavyweights Nifty Bank, Nifty Financial Services and Nifty IT began the trading session on a strong note as all of them were trading in the green. Nifty FMCG and Nifty Realty were the only two sectoral indices trading in negative territory.

The top five gainers on the Nifty50 were Power Grid, BPCL, HCLTech, IndusInd Bank and M&M. On the other hand, the top losers were Tata Consumer Products, Maruti, HDFC Life, Nestle India and Eicher Motors.

Meanwhile, shares of digital payments firm Paytm slumped nearly 7 per cent in early trade after regaining 13 per cent in two sessions. This was after a media report suggested that CDSL, the largest securities depository firm in the country, is reviewing the customer verification process at Paytm Money, which is a subsidiary of Paym.

The mood on Dalal Street will depend on any favourable statements by the RBI Governor Shaktikanta Das, who will announce the Monetary Policy Committee’s rate decision shortly. While the RBI is expected to keep the key repo rate unchanged for the sixth consecutive time, investors on Dalal Street are looking forward to positive commentary on the economic front from the central bank.