Indian shares flat at open as investors await RBI policy cues

Indian equity benchmarks are set to open little changed on Thursday, with investors choosing caution ahead of the Reserve Bank of India’s monetary policy decision later in the day.

GIFT Nifty futures were trading marginally lower in early deals, signalling a muted start for domestic markets. Traders are largely sitting on the sidelines, waiting for clarity on the central bank’s stance on interest rates, liquidity conditions and its assessment of inflation and growth risks.

Market participants broadly expect the RBI to keep the policy repo rate unchanged, while closely tracking commentary on food inflation, global crude prices and the trajectory of capital flows. Any guidance on future liquidity management is also expected to influence near-term market direction.

Asian markets were mixed, offering limited cues, while overnight US equities ended lower amid concerns over slowing global growth and mixed corporate earnings. These global signals, combined with the domestic policy event, have kept risk appetite in check.

On the sectoral front, rate-sensitive stocks such as banking, financial services and real estate are likely to see stock-specific action as investors position themselves ahead of the policy announcement. Export-oriented sectors may continue to track currency movements.

Broader markets are expected to mirror benchmark indices, with volatility picking up once the RBI decision and policy statement are released.