India : Markets may open flat to negative amidst mixed global cues, driven by MPC decision in the last hour
Wed Feb 08 2017
Rajesh Sharma (2003 articles)

India : Markets may open flat to negative amidst mixed global cues, driven by MPC decision in the last hour


Indian benchmark indices got off to a pessimistic start on Tuesday as investors were largely influenced by the subdued leads from Asian markets. Thereafter, the key indices failed to show any kind of momentum due to lack of encouraging leads. The key gauges suffered a setback in afternoon trades as sudden bouts of profit booking emerged in the markets. However, the indices recovered from the lows of the day, but could not succeed in minimising the huge losses by the end of the trading session. The NSE’s 50-share broadly followed index – Nifty plunged by over quarter per cent to settle below the crucial 8,800 level; while Bombay Stock Exchange’s Sensitive index – Sensex took a triple digit cut and closed below the psychological 28,350 mark.The European markets closed in the mix as investors are beginning to get concerned over the political situation in France and potential for a “Frexit”. The DAX of Germany climbed 0.34 per cent, but the CAC 40 of France fell 0.49 per cent. The FTSE 100 of the U.K. gained 0.20 per cent.The U.S. stocks closed upbeat on Tuesday as the Nasdaq Composite index closed at a record high, underpinned by gains in large- cap Tech shares such as Apple Inc., and IBM. But major indexes remained range-bound as solid corporate earnings were overshadowed by news that the U.S.’s trade deficit hit a four-year high of $ 502.3 billion.Asian stocks are trading negative on Wednesday, where Japan’s Nikkei 225 slipped 35 points, Hang Seng shed 120 points and Shanghai Composite fell 17 points.  At 8:07 am, SGX Nifty index has fallen 21.50 points to 8,778, indicating a negative start for Indian equities. Will RBI deliver a interest rate cut on Wednesday to lift growth, is the question hovering in everyone’s mind now. RBI’s monetary policy committee will announce its decision at 2:30 PM in Mumbai today.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.


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