Sensex, Nifty likely to get cautious start ahead of RBI’s policy outcome
Today, the start of session is likely to be cautious ahead of the Reserve Bank of India’s (RBI) monetary policy outcome later today.
Indian equity benchmarks ended volatile session in green terrain on Tuesday. Today, the start of the session is likely to be cautious ahead of the Reserve Bank of India’s (RBI) monetary policy outcome later today.
The Reserve Bank of India (RBI) is slated to announce its first bi-monthly monetary policy of the 2021-22 fiscal today, 7 April 2021 after a three-day meeting of the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das.
Global markets:
Overseas, Asian are trading mixed on Wednesday after Wall Street pulled back from record highs reached in previous sessions.
U.S. stocks fell from record levels on Tuesday as the recent rally driven by signs of strong economic rebound took a pause.
On Tuesday, California Governor Gavin Newsom said that the state will reopen its economy by June 15 provided that coronavirus vaccine and hospitalization cases remain stable.
The IMF on Tuesday projected an impressive 12.5% growth rate for India in 2021, stronger than that of China, the only major economy to have a positive growth rate last year during the COVID-19 pandemic. The Indian economy is expected to grow by 6.9% in 2022.
The IMF revised up its forecast for the world economy. On Tuesday, the organization said it expects growth at 6% in 2021, up from a January prediction of 5.5%, and Chief Economist Gita Gopinath said that despite lingering uncertainties around the pandemic, a “way out of this health and economic crisis is increasingly visible.”
Domestic markets:
Back home, key equity indices ended with small gains after a volatile session on Tuesday. Gains were capped amid a spike in COVID-19 cases in the country. The barometer index, the S&P BSE Sensex, rose 42.07 points or 0.09% to 49,201.39. The Nifty 50 index added 45.70 points or 0.31% to 14,683.50.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,092.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 416.59 crore in the Indian equity market on 6 April, provisional data showed.