NEW DELHI: Indian stock markets opened on a cautious note on Friday, as investors remained in a wait-and-watch mode ahead of the Reserve Bank of India's key monetary policy announcement. The policy decision is scheduled to be announced at 10 AM.

The benchmark indices reflected this cautious mood. The Nifty 50 opened at 24,748.70, down just 2.20 points or 0.01 per cent. Similarly, the BSE Sensex also opened flat at 81,434.24, down 7.80 points or 0.01 per cent.

Experts believe that any decision on the policy rate could significantly influence the market sentiment, especially if there is a larger-than-expected rate cut.

Market experts are closely watching the RBI's Monetary Policy Committee (MPC) decision, with expectations divided between a 25 basis points (bps) and a 50 bps rate cut. A 50 bps cut, they say, could give a strong boost to market sentiment and trigger a rally post the announcement.

In the broader market, indices showed a slightly positive tone. The Nifty 100 also opened flat in green, while the Nifty Midcap 100 and Nifty Smallcap 100 gained 0.33 per cent each. Volatility in the Indian markets declined, with the India VIX falling more than 4 per cent, suggesting reduced investor nervousness ahead of the RBI announcement.

Among sectoral indices on the NSE, the trend was mixed. Except for Nifty Private Bank, all other sectors opened in the green. Nifty Media shares gained 0.33 per cent, Nifty Metal rose by 0.36 per cent, and Nifty Auto increased 0.16 per cent. The Nifty IT index remained largely flat, up by 0.07 per cent.