How is the market faring? (as of 10:29 am)
The market has slipped to trade in the red, flat with a negative bias, with the BSE Sensex trading at 34,933 points while the NSE Nifty, breaches 10,600, and is trading at 10,593 points. The investors seem to be cautious of the RBI policy meet outcome. Shriram Transport Finance Company is currently at the day's low, losing more than three percent.
Market opens flat, BPCL falls.
The market opens flat as mixed global cues and the RBI policy meet outcome concerns keep the market in check. The BSE Sensex opened at 35,067 points while the NSE Nifty opened at 10,615 points. The RBI policy meet outcome concerns are keeping the investors from being bullish as some experts say that there might be a repo rate hike, after four and a half years, or the rate will be kept unchanged. BPCL is currently losing over a percent in trade as the global oil prices have risen. Coal India, HCL Tech, Tech Mahindra, Idea Cellular and Bharti Infratel are the top index gainers of the hour while Dr Reddy's Labs, Asian Paints, Yes Bank, Axis Bank and Bharti Airtel are the top index losers in the opening trade.
How was the market expected to open?
The market is likely to slightly recover but keep in check, as mixed global cues and the Reserve Bank of India (RBI) policy meet on Wednesday is likely to keep the investors cautious in trade.
The Asian stocks dipped on Tuesday as the markets took a breather after the previous day’s rally, although tech-inspired Wall Street gains helped limit the losses, with investor focus moving away from trade concerns and back to benign economic fundamentals.
Wall Street’s three major indexes rose overnight, led by a rally in tech stocks, pushed the Nasdaq to a record closing high. The better-than-expected May US employment report was one of the major reasons for the market to close higher for the second consecutive day.
The European Market also closed largely higher led by a rally in the utility stocks. The Air France-KLM soared 5.5% in trade. FTSE, DAX and CAC closed in the green while FTSE (MIB) Italy closed in the red.
The SGX Nifty is trading at levels around 10,586 points, indicating a weak opening for the Indian market.
In India, the Reserve Bank of India (RBI) policy meet outcome is due on Wednesday. Some market experts say that a rate hike in the policy repo rate is likely, i.e. after four and a half years, while some say that the repo rate may remain unchanged and the change is likely to happen in the August meet.
The Indian market on Monday looked isolated from global peers, courtesy the big fall in domestic banks.
The leading banking index, Nifty Bank, tumbled 445 points to 26,258 with all the constituents of the index closing in the red.
The biggest loser of them was HDFC Bank, with its contribution to Nifty Bank fell at over 60%.
The benchmark indices, Sensex, closed 215 points lower at 35,012 and the Nifty shedding 68 points to end the session below 20-day moving average at 10,629.
First Published: IST