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Mkt may be in a limbo ahead of RBI policy; to open in red

The News International Team

The Indian equity market is likely to open trade on a marginally weak note with the SGX Nifty, an indicator of the market opening, trading at 8558.50, down 41 points.

Indian equity benchmarks snapped three-day gains on Monday with the Sensex falling over 100 points as investors looked cautious ahead of RBI policy. The 30-share BSE Sensex fell 134.37 points to close at 28559.62. The 50-share NSE Nifty slipped 32.35 points to 8555.90 after hitting a record high of 8623 in early trade. ( More details )

Meanwhile, all eyes today will be set on RBI governor Raghuram Rajan, as the Reserve Bank of India in its monetary policy review may announce a rate cut. An overwhelming majority expects a status quo but most market watchers also expect the RBI to sound more dovish.

On the macro front, good news continues, as growth shows signs of a pick up. Eight core sectors accelerate over 6 percent in October. HSBC manufacturing PMI shot up to its highest level in nearly 2 years.

In other news, an action packed day is anticipated as far as NDA government’s legislative agenda is concerned. The select panel on insurance bill will meet today for clause-by-clause deliberation of the crucial legislation.

Globally, US stocks declined, with the Nasdaq composite falling for the first session in seven, as a lacklustre start to the holiday shopping season mostly overrode data that had a measure of US factory activity slowing less than expected in November.

And in Europe, shares closed lower with the falling price of major commodities weighing heavily on the mining and energy sectors.

In the currency space, USD nursed modest losses, having come under pressure as currencies such as the Canadian dollar staged a dramatic reversal thanks to a broad rebound in commodity prices.

In commodities, crude prices rebounded from a five-year low, as data suggested that tumbling prices might have started to affect drilling activity in the fast growing US shale oil industry. Brent crude was trading around USD 72 per barrel.

From precious metals space, gold rebounded sharply yesterday to USD 1220 an ounce after Switzerland voted against a proposal to boost its gold reserves.

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