Nifty likely to start lower ahead of
RBI policy; volatility seen
Indian stocks are likely to start in the red, tracking weakness in oil prices that bogged down both Wall Street overnight and Asian markets this morning, even as markets head into a key RBI meeting where a rate cut is but a foregone conclusion.
In other asset classes, the US dollar fell against the yen,
Nymex fell to a one-month low while gold steady. A number of stocks will
witness action such as OMCs after the fuel price hike last evening, as well as
Equitas Holding, which lists shares today. Stocks related to leaks of the
Panama Papers will also be in focus with the Indian Express today putting out a
fresh list of individuals holding offshore accounts.
Indian stocks are likely to start in the red, tracking weakness in oil prices that bogged down both Wall Street overnight and Asian markets this morning, even as markets head into a key RBI meeting where a rate cut is but a foregone conclusion.
At the time of writing, the SGX Nifty was trading 0.65
percent, or 50 points, to 7,735 points. Traders say there will likely be
volatility today, with 95 percent of analysts polled by CNBC-TV18 expecting a
rate cut by the Reserve Bank. The decision will be due at 11 am.
However, in light of the Union Budget where the government
stuck to its fiscal deficit target and its recent decision to cut the small
savings rate, some analysts have said a 25 basis point cut may not be enough
and even be disappointing for the markets.
Expect RBI to cut
rates by 0.25% in monetary policy: Raina
The USD-INR pair is approaching the lower end of the Rs
66-67/USD band with decent portfolio flows coupled with strong intervention
keeping it in a tight range, says investment visor.
Ashutosh Raina, HDFC Bank said the RBI is widely expected to
cut rates by 0.25 percent in the monetary policy later today, adding
communication from policy makers will be keenly watched by the market
participants.
According to him, USD-INR pair is approaching the lower end
of the Rs 66-67/USD band with decent portfolio flows coupled with strong
intervention keeping it in a tight range.
Raina expects the Rs 66-67/USD range to continue till the
policy announcement. Meanwhile, the 10-year benchmark bond yield has rallied to
7.40 percent levels on the expectations of a rate cut from RBI, he says. He
expects bonds to trade in a narrow range till the policy announcement.
Equity Tips, Stock Cash Tips By Investment Visor
No comments:
Post a Comment