Nifty may open flat to negative – Equity Tips | Stock Cash Tips

With the markets world over closing lower and SGX Nifty up only 6 points, the Indian equity market is likely to open soft to negative.

The Indian equity market is likely to open flat to negative today with the market indicator SGX Nifty trading only 6 points up at 7566. 

The US market also ended flat but was off the session lows despite a decline in oil prices and soft China manufacturing data. Asian markets too open lower in early trade. 

The oil rout resumed, Nymex crude futures ended nearly 6 percent lower after an OPEC source under-mined chances of an emergency meeting to stem the decline. 

In Europe, markets too finished lower yesterday, as another fall in china's factory activity and a slide in oil prices troubled investors. 

From the currency space, the dollar extended its rebound against the yen to a fifth straight day after Wall Street reversed nearly all its earlier losses allowing USD/JPY to hold onto 121.00 and close with a slim gain. The dollar was lower against all the other G-10 currencies(Equity tips).

However, as disappointing US economic data coupled with comments from Fed Vice Chairman Stanley Fischer indicated interest rates will remain unchanged through the March FOMC meeting.

From other asset class gold rose to a three-month high on Monday, extending its recent rally on worries about global economic growth and hopes for easier monetary policy after weak factory data in Asia and Europe.

Back home, the most important for the market is the RBI monetary policy. Consensus expectations is that that Central Bank is likely to maintain a status quo today. A CNBC-TV18 poll shows 100 percent of market participants expect no change in key policy rates. 

On the earnings front in India, Tech Mahindra reported a subdued set of third quarter numbers. Dollar revenues missed the mark but other parameters were in-line with expectations. 

Crompton greaves and DLF will be reporting its third quarter earnings today and Teamlease Services IPO will be hitting market today(Stock Cash Tips).

Nifty ends below 7600, Sensex flat head of RBI policy; SBI tanks:

 
Meanwhile, bank stocks remained under pressure led by SBI. Bank Nifty ended 1.3 percent lower, while SBI slipped 4 percent. Worried about State Bank of India's bad loan Morgan Stanley has reduced target price to Rs 115 per share, implying 36 percent downside. 

The market ended flat with negative bias ahead of RBI monetary policy review on Tuesday. The Nifty touched 7600 intraday but was seen struggling below the psychological level most of the time. The 50-share index was down 7.60 points or 0.1 percent at 7555.95 and the Sensex slipped 45.86 points or 0.2 percent at 24824.83(Nifty Tips).

The Reserve Bank of India is unlikely to take any interest rate action at the monetary policy meeting tomorrow. According to a CNBC-TV18 poll of economists the market seems to have factored in a no-action policy from RBI chief Raghuram Rajan at the bi-monthly meet. The RBI is also likely to maintain the word 'accommodative policy' in its monetary policy statement. 

Around 60 percent of respondents believe that there will only be one 25 basis points bps rate cut in the entire calendar and the remaining 40 percent are divided between a 50 bps and 75 bps rate cut from the governor. 

However, Andrew Holland of Ambit Investment Advisors feels the central bank could cut repo rate by 25 basis points, something that could surprise the market. 

"The Nifty for now appears to have put a bottom at 7,200 and it may be respected for the next few days or weeks but I am not sure I can say it is the final bottom," Mukherjee told CNBC-TV18 in an interview, warning that traders shouldn't "overstay their welcome" on the current bounceback. "For the rally to sustain, we need other factors to fall into place."

On RBI Policy day:-

RBI maintains status quo on rates, eyes Union Budget 2016-17 for next rate cut .

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