Pre Session- Sensex to open tad higher; RBI policy in focus
02/06/2015
Dalal Street is likely to open on a marginally positive note today with all eyes fixated on the Reserve Bank of India’s (RBI) monetary policy review as traders bank on Raghuram Rajan to please them with a 25 basis points reduction in key interest rates, which would be the third such cut in 2015. The downward trajectory of consumer inflation, the RBI’s benchmark inflation gauge that slid to a four month low of 4.87 per cent in April 2015 coupled with the progress on the fiscal front by the Modi government are factors favouring a rate cut. However, the probability of a below-par monsoon which may boost food inflation and an uptick in crude oil prices could tie RBI’s hand over further policy easing in the coming months, experts have warned. Slim gains in the SGX CNX Nifty Index futures for June delivery which climbed by 0.11 per cent at 8,431.50 at 10:25 am Singapore time, signal a gap up opening at Dalal Street on Tuesday. A positive trend across most Asian markets tracking a solid finish at Wall Street overnight may also offer support to key domestic benchmarks. Asian markets were mostly higher after better than expected US factory and construction spending data eased worries over the health of the world’s biggest economy. US manufacturing expanded in May as new orders surged the most in five months, while construction spending for April topped analysts’ estimates. China’s Shanghai Composite was trading higher amid bets that policymakers may bolster stimulus to spur a growth revival in the world’s second biggest economy, but Hang Seng fell while Japan’s Nikkei 225 was lifted by a weaker yen which bolstered the appeal of exporter stocks. Back home, the 30-share Sensex advanced 20.55 points or by 0.07 per cent to end at 27,848.99 on Monday as investors cheered robust Q4 GDP numbers while data showing that the country’s manufacturing activity expanded at the fastest pace in four months in May also bolstered the lure for risky assets.
02/06/2015
Dalal Street is likely to open on a marginally positive note today with all eyes fixated on the Reserve Bank of India’s (RBI) monetary policy review as traders bank on Raghuram Rajan to please them with a 25 basis points reduction in key interest rates, which would be the third such cut in 2015. The downward trajectory of consumer inflation, the RBI’s benchmark inflation gauge that slid to a four month low of 4.87 per cent in April 2015 coupled with the progress on the fiscal front by the Modi government are factors favouring a rate cut. However, the probability of a below-par monsoon which may boost food inflation and an uptick in crude oil prices could tie RBI’s hand over further policy easing in the coming months, experts have warned. Slim gains in the SGX CNX Nifty Index futures for June delivery which climbed by 0.11 per cent at 8,431.50 at 10:25 am Singapore time, signal a gap up opening at Dalal Street on Tuesday. A positive trend across most Asian markets tracking a solid finish at Wall Street overnight may also offer support to key domestic benchmarks. Asian markets were mostly higher after better than expected US factory and construction spending data eased worries over the health of the world’s biggest economy. US manufacturing expanded in May as new orders surged the most in five months, while construction spending for April topped analysts’ estimates. China’s Shanghai Composite was trading higher amid bets that policymakers may bolster stimulus to spur a growth revival in the world’s second biggest economy, but Hang Seng fell while Japan’s Nikkei 225 was lifted by a weaker yen which bolstered the appeal of exporter stocks. Back home, the 30-share Sensex advanced 20.55 points or by 0.07 per cent to end at 27,848.99 on Monday as investors cheered robust Q4 GDP numbers while data showing that the country’s manufacturing activity expanded at the fastest pace in four months in May also bolstered the lure for risky assets.
