Market Wrap: Sensex, Nifty end higher on fag end buying ahead of RBI MPC outcome; mid, smallcaps outperform
Nifty ended higher on Wednesday, thanks to late-session buying activity just a day before the monetary policy outcome. The three-day meeting of the six members of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) is underway and it will conclude on Thursday (August 10). Experts believe the RBI will maintain a status quo on rates and stance and the domestic market may not see any significant reaction to the RBI MPC outcome since the market has factored in this status quo.
Read more: RBI policy: How the Indian stock market is expected to react tomorrow Besides, positive global cues also underpinned sentiment. Major European markets were trading with healthy gains when the Sensex closed. European stocks rose after Italy said that the new windfall tax on banks would not amount to more than 0.1 per cent of their assets.
This soothed the concerns of markets after Itlay announced a 40 per cent windfall tax on banks for the year 2023. "Italy's economy ministry clarified that its 40 per cent windfall tax, which targets profits banks have made on higher interest rates, would not amount to more than 0.1 per cent of their total assets," reported Reuters. Sensex opened 36 points lower at 65,810.96 against the previous close of 65,846.50.
The index remained in the red for the most part of the day, falling 402 points to hit the intraday low of 65,444.38. However, fag end buying saved the index from ending in the negative territory. Sensex closed 149 points, or 0.23 per cent, higher at 65,995.81 while the Nifty closed the day at 19,632.55, up 62 points, or 0.32 per cent.
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