Sensex, Nifty slip after flat opening as global cues weigh, RBI policy fails to cheer
Indian benchmark indices opened their doors before major events and after the review of monetary policy of the Reserve Bank of India yesterday. BSE Sensex opened 45.63 points or increased by 0.15% to 31 316.91 points, while NSE Nifty, the largest, opened 18.50 points or 0.19% higher than 9,682 points. At 9:30 in the morning, BSE Sensex trades 39.18 points, or 0.13% higher than 31,310.46 points, while NSE Nifty rose 10.50 points or 0.11% to 9674.40 points.
The RBI has kept the interest rate unchanged at 6.25% and the SLR reduction by 50 basis points to 20%. The monetary policy committee has also lowered its forecast for general inflation by between 2.0 and 3.5 percent in the first half of the current year and between 3.5 and 4.5 percent in the second half.
On the progress of the monsoon, the Indian Meteorological Department said that the southwest monsoon is expected to hit Maharashtra in a day or two.
The UK is to vote today in an early general election announced by Prime Minister Theresa May in mid-April. The European Central Bank (ECB) is likely to keep the money fully open at its meeting on Thursday, while inflation remains below its target despite the most intense economic growth in the euro zone, according to a Reuters report. The ECB is expected to keep the policy unchanged, including its 2.3 trillion euro ($ 2.59 trillion) bond buyout program and lower zero interest rates, despite the resistance rich Germany Species, the report added.
Asian markets are trading lower in the morning trade. The MSCI broader index of Asian stocks outside Japan fell 0.27%. US stocks topped Wednesday after a written testimony from former FBI director James Comey. The Dow Jones Industrial Average rose 37.46 points, or 0.18 percent, to close at 21 173.69 points, the S & P 500 gained 3.81 points, or 0.16%, to close at 2 433.14 Points and the Nasdaq Composite add 22.32 points or 0.36% to about 6 297.38 points.
The Indian rupee fell against the dollar in early trading. That opened at 64.40, down 7 countries plus its previous close level of 64.33 dollars. On Wednesday, the currency closed at 64.33 against the dollar, nearly 10 countries stronger than its previous close of 64.43, following the decision of the Reserve Bank of India (RBI) to maintain the exclusive board rate unchanged In its review of monetary policy.
US oil futures have closed 5%, or less than $ 2.47 a barrel to $ 45.72 a barrel, the lowest percentage of US crude on May 4. Crude oil stocks in the United States rose 3, 3 million barrels to 513 million barrels, according to the Energy Information Administration (EIA). Reference futures in the United States have fallen more than 11 percent in 10 trading days, according to a Reuters report.