Stock Markets Look to RBI Policy for Cues, Say Experts


Outcome of the Reserve Bank of India’s policy review on Tuesday, trend of foreign fund inflows and quarterly earnings expectations will set the tone for the stock market during the week beginning April 4, say experts.

“Rate cut and earnings expectations to dominate trading sentiments this week. The next big event for investors is the RBI monetary policy review. RBI will announce the first bi-monthly monetary policy for 2016-17 on Tuesday.”

“Hopefully, the upcoming monetary policy will provide the needed trigger for next directional move,” said Vijay Singhania, founder-director of Trade Smart Online.

Apart from rate-cut expectations, investors will now also start building up expectations for March 2016 earnings, he said.

BHEL is scheduled to announce on Thursday its tentative financial results for the year ended March 31.

“The key event for the market is monetary policy review from Reserve Bank of India. Outcome of RBI’s monetary policy, trend in global markets, investment by foreign investors, movement of crude oil prices will dictate trend of the market in near term,” said Rohit Gadia, founder and CEO of CapitalVia Global Research.

Also, Purchasing Managers’ Index (PMI) data for services and manufacturing sectors, which would have a bearing on trading, are due during the week.

Meanwhile, snapping four weeks of gains, the market finished the week from March 28 to April 1 with minor losses as the BSE benchmark Sensex fell 67.92 points to close at 25,269.64 while the NSE Nifty ended on a flat note, slipping by a marginal 3.45 points, and managed to hold the crucial 7,700 level.

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