Markets expect to have a flat opening; all eyes would be on RBI policy

Indian markets are expected to the begin the session with modest gains, due to sombre cues from the Asian peers. However, how markets will end today’s session would chiefly depend on the outcome of Reserve Bank of India’s (RBI) policy meet. As the retail inflation is well above the RBI’s comfort zone, street strongly believes that there won’t be any further rate cut. Having said that, the year 2020 has been year of surprise. And market participants won’t mind getting a pleasant surprise from the RBI governor in the form of 25 basis points (bps) or may be even 50 bps rate cut (100 basis points = 1 per cent). In short, all eyes would be glued on the RBI’s policy outcome.  

At 7:45 AM, SGX Nifty was trading with modest gains of 6 points at 11,122 levels, signalling the markets to open on a flat note.

Today on the earnings front, stocks such as Lupin, Pidilite Industries, HindPetro and Torrent Power are scheduled to report their quarterly earnings.

Asian indices seem struggling for a clear direction on Thursday morning. The Hong Kong’s Hang Seng and Japan’s Nikkei 225 were trading in red, down by 0.85 per cent and 0.26 per cent, respectively. On the other hand, China’s Shanghai Composite traded in green with modest gain of 0.01 per cent.  

Asian Markets

Before settling on a mixed note, domestic benchmark indices took a roller coaster ride as indices were moving up and down. Nifty added 0.06 per cent to finish at 11,102, whereas Sensex dipped 0.07 per cent to end at 37,663. The real action was witnessed in the broader indices. Hands down they outperformed frontline indices with Nifty Mid-cap and Nifty Small-cap ascending 0.55 per cent and 1.13 per cent, respectively. On the sectoral front, Nifty Metal outshined all indices as it surged close to four per cent, whereas Nifty Auto and Nifty Media jumped more than one per cent.

On Wednesday, the US stocks roared higher with Dow outperforming its counterparts aided by a massive jump in the stock price of Disney. Dow recorded its best closing since last two months and closed above 27,200 level. Nasdaq registered another record high close and S&P 500 closed at its five months high.  On the economic front, better than anticipated July services sector reports continue to indicate revival in the economic activity.   Amid a host of reported earnings were better than the estimates, European indices too ended the session in green. On economic front, Eurozone’s July manufacturing and services sector exhibited rebounding of growth. This further added to the buoyancy.

US Markets

Europe Markets

Commodity