The domestic stock markets are likely to open in the green, going by early indications from SGX Nifty futures trading, ahead of the monetary policy decision announcement by RBI Governor Shaktikanta Das. Trends on SGX Nifty indicate a positive opening for the index in India, with a 37-points gain. At 7:30 am, the Nifty futures were trading at 14,782, higher by 37 points or 0.28 per cent, on the Singapore Stock Exchange.
Reserve Bank of India Governor Shaktikanta Das will announce the monetary policy decision, at the end of a scheduled review of the Monetary Policy Committee (MPC) that began on Monday. Experts reckon that the central bank will maintain status quo on policy rates at the first bi-monthly monetary policy review for the new fiscal as the pandemic poses a renewed threat to economic growth.
Asia equities are set for a sluggish open on Wednesday after Wall Street pulled back from record highs reached in previous sessions, as investors eye the upcoming earnings season for more signs of a recovery following a series of strong U.S. economic data. Japan’s Nikkei 225 futures fell 0.1 per cent, while Australian S&P/ASX 200 futures rose 0.04 per cent.
The S&P 500 slipped on Tuesday but stayed near closing record highs posted in consecutive sessions, as investors weighed more strong U.S. economic data against nervousness about upcoming quarterly earnings reports.
The Dow Jones fell 0.29 per cent, the S&P 500 lost 0.10 per cent and Nasdaq Composite dropped 0.05 per cent.
Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid increased COVID-19 vaccinations and a report that crude inventories in the United States, the world’s biggest fuel consumer, fell.
Brent crude futures for June rose by 34 cents, or 0.5 per cent, to $63.08 a barrel by 0123 GMT and U.S. West Texas Intermediate crude for May was up 32 cents, or 0.5 per cent, to $59.65.
Meanwhile, the IMF has projected a growth rate of 12.5 per cent for India in 2021. This is stronger than China, the only major economy to register a positive growth rate last year during the COVID-19 pandemic.
On Tuesday, the Sensex closed with a nominal gain of 42 points and the Nifty settled higher by 46 points.