Gap up opening seen at Dalal Street
15/07/2015 08:37
The Indian equities is expected to open higher on Wednesday on hopes of an interest rate cut by the central bank next month as wholesale prices fell by 2.4 per cent in June 2015, marking the eighth straight decline. India’s wholesale prices remained entrenched in deflation in June as gains in food prices eased, keeping alive hopes of an interest rate cut at the Reserve Bank of India’s (RBI) upcoming policy meet early next month, auguring well for the outlook of Asia’s third biggest economy. On the global front, Asian markets were trading mixed as China and Hong Kong stocks retreated, while Japan’s Nikkei 225 advanced as a weaker yen bolstered the appeal of exporters. China’s Shanghai Composite fell despite a better-than-expected economic growth which grew 7 per cent on year in the April-June period. In the overnight trade, US stocks ended higher for a fourth straight session buoyed by the energy sector as oil prices rebounded from early declines. Back home, firm trading at Nifty India stock futures in Singapore further indicates a positive opening on the domestic market.
Amidst a lackluster trading session, the key domestic benchmark indices ended flat with a slightly negative bias on Tuesday, led by losses in the rate sensitive auto, realty and banking stocks, as hopes of rate cut were dampened as the retail inflation which touched 8-month high of 5.4 per cent in June.
