Markets set to open higher ahead of RBI policy decision

File picture: RBI expected to cut its key lending rates by 25 basis points (bps) for the third consecutive meeting in its policy decision 

Indian shares are set to open higher on Friday, ahead of the Reserve Bank of India’s (RBI) policy announcement, where a rate cut is widely anticipated.

The Gift Nifty futures were trading at 24,842 as of 7:21 a.m. IST, indicating that the benchmark Nifty 50 will open above Thursday’s close of 24,750.90.

The RBI is expected to cut its key lending rates by 25 basis points (bps) for the third consecutive meeting in its policy decision at 10:00 a.m. IST.

While a 25 bps rate cut is likely, markets are looking for a stronger growth focus from the RBI to boost consumption and support domestic businesses, said Divam Sharma, co-founder and fund manager at Green Portfolio PMS.

While GDP growth for the fourth quarter came in at 7.4%, broadly in line with expectations, the gross value added print, which came in at 6.8%, better reflects the state of the economy, according to HSBC.

The Nifty and BSE Sensex rose about 0.5% each on Thursday, with rate-sensitive sectors such as realty and financials leading the gains.

The benchmarks are roughly 6% shy of the record highs hit in late September 2024.

Other Asian markets opened little changed, while Wall Street equities closed lower overnight as a high-profile dispute between US President Donald Trump and billionaire Elon Musk weighed.

Published on June 6, 2025