The Indian stock market closed flat on Friday after the decision of the RBI Monetary Policy Committee (MPC) . The Sensex closed at 81,709.12 with a decline of 56.74 points (0.07%) and the Nifty closed at 24,677.80 with a decline of 30.60 points (0.12%). There was selling in the banking and IT sectors, while investors showed interest in the auto and metal sectors.

Repo rate steady, CRR cut.

RBI maintained the repo rate at 6.5%, while reducing the CRR by 50 basis points to 4%. This brought liquidity of Rs 1.16 lakh crore into the banking system. This step has been taken to balance inflation control and economic growth.

Performance of Nifty Bank, Midcap and Smallcap

Nifty Bank closed down 94.05 points (0.18%) at 53,509.50. On the other hand, the Nifty Midcap 100 index gained 263.05 points (0.45%), and the Nifty Smallcap 100 index gained 158.55 points (0.82%).

Weekly gains and FII trends

This week Nifty gained 3.2%, Midcap 3.5,% and Smallcap 3.3%. Krishna Appala of Capital Mind Research said that the slow return of foreign investors (FII) has given relief to the market. Net cash flow in the first week of December was Rs 14,000 crore.

Top Gainers and Losers

Tata Motors, Axis Bank, Maruti, L,&T, and ITC were among the top gainers in the Sensex. Whereas, Bharti Airtel, Asian Paints, IndusInd Bank, Bajaj Fins,erv , and Infosys were the top losers.

Opinion of experts

Vipul Bhowar of Waterfield Advisors said that this decision of RBI is a balanced step towards controlling inflation and maintaining economic growth amid global economic uncertainties.

Signal for investors

Strong buying in the metal and auto sectors and positive signals from FIIs are expected to benefit investors in the long run. However, caution is necessary because of the current global economic conditions.