Pre Session- Caution to rule D-Street as RBI verdict eyed
04/08/2015
Indian equity benchmarks are poised to open little changed as traders remain on the sidelines ahead of the outcome of the Reserve Bank of India’s (RBI) monetary policy meet in which the apex bank will decide whether to oblige with a fourth interest rate cut in the year. With consumer price inflation rising to an eight- month high of 5.4 per cent in June driven by a spike in food prices, most analysts believe that the RBI on Tuesday may maintain status quo on interest rates, keeping the repo rate unchanged at 7.25 per cent. At the same time, the RBI is expected to sound more dovish than last time and signal the likelihood of further policy easing in the coming months as it seeks more clarity on monsoons while a worsening global commodities rout also exerts downward pressure on prices. Shares of telecom giant Bharti Airtel will be in focus today as the company unveils its June quarter report card today. Marking a fourth straight day of gains, the 30-share Sensex advanced by 72.5 points or by 0.26 per cent to close at 28,187.06 on Monday led by gains in banking stocks aided by the centre’s plans to inject additional capital in state-run banks that are grappling with bad loans. Against the backdrop of weakness in most Asian stocks amid a deepening commodities rout, and a bearish finish at Wall Street on Monday, coupled with soft trade in the SGX CNX Nifty Index futures for August delivery which fell 0.03 per cent or 2.5 points at 8,559.50 at 10:50 am Singapore time, Dalal Street is set for a cautious opening today.
Asian shares were lackluster on Tuesday as commodity producers fell amid a plunge in crude oil prices as Iran threatened to beef up production while a worsening China factory slowdown cast doubts over the energy commodity’s demand outlook. China’s benchmark index, the Shanghai Composite was flat even as the country’s officials unveiled more measures to stem the steep stock market rout including curbs on short selling forcing traders to hold for at least a day. Hang Seng fell and Japan’s Nikkei 225 succumbed to mild losses, tracking a bearish finish at Wall Street overnight when a pullback in American manufacturing in July soured sentiment in risky assets.
04/08/2015
Indian equity benchmarks are poised to open little changed as traders remain on the sidelines ahead of the outcome of the Reserve Bank of India’s (RBI) monetary policy meet in which the apex bank will decide whether to oblige with a fourth interest rate cut in the year. With consumer price inflation rising to an eight- month high of 5.4 per cent in June driven by a spike in food prices, most analysts believe that the RBI on Tuesday may maintain status quo on interest rates, keeping the repo rate unchanged at 7.25 per cent. At the same time, the RBI is expected to sound more dovish than last time and signal the likelihood of further policy easing in the coming months as it seeks more clarity on monsoons while a worsening global commodities rout also exerts downward pressure on prices. Shares of telecom giant Bharti Airtel will be in focus today as the company unveils its June quarter report card today. Marking a fourth straight day of gains, the 30-share Sensex advanced by 72.5 points or by 0.26 per cent to close at 28,187.06 on Monday led by gains in banking stocks aided by the centre’s plans to inject additional capital in state-run banks that are grappling with bad loans. Against the backdrop of weakness in most Asian stocks amid a deepening commodities rout, and a bearish finish at Wall Street on Monday, coupled with soft trade in the SGX CNX Nifty Index futures for August delivery which fell 0.03 per cent or 2.5 points at 8,559.50 at 10:50 am Singapore time, Dalal Street is set for a cautious opening today.
Asian shares were lackluster on Tuesday as commodity producers fell amid a plunge in crude oil prices as Iran threatened to beef up production while a worsening China factory slowdown cast doubts over the energy commodity’s demand outlook. China’s benchmark index, the Shanghai Composite was flat even as the country’s officials unveiled more measures to stem the steep stock market rout including curbs on short selling forcing traders to hold for at least a day. Hang Seng fell and Japan’s Nikkei 225 succumbed to mild losses, tracking a bearish finish at Wall Street overnight when a pullback in American manufacturing in July soured sentiment in risky assets.
