MONETARY POLICY IN FOCUS

 

MONETARY POLICY IN FOCUS

 

WORLD MARKETS

 

US indices ended marginally lower, with S & P 500 and Nasdaq snapping 3-day winning streak while Dow broke two-day rising streak.

 

IMF raised its 2021 growth outlook for the global economy to 6%, up from January’s forecast of 5.5%.

 

Brent crude rose 59 cents to settle at $62.74 per barrel while WTI crude settled 68 cents, or 1.2%, higher at $59.33 per barrel.

 

The 10-year Treasury yield dipped 7 basis points to 1.65%. The dollar index fell 0.24% to 92.34, it's lowest in near two-weeks. Spot gold rose 0.8% to $1,743.04 per ounce.

 

European markets rose 0.2%-1.3%.

 

AT HOME

 

Sensex and Nifty inched up 0.1% and 0.3% respectively after a choppy session. Sensex settled at 49201, up 42 points while Nifty added 45 points to finish at 14683. Nifty mid-cap and small-cap indices climbed 0.9% and 1.4% respectively. BSE Healthcare and Industrials indices surged 1.6% each, becoming top gainers among the sectoral indices while Bankex was the top loser, down half a percent, followed by 0.2% lower Utilities and Energy indices.

 

FIIs net sold stocks worth Rs 1093 cr but net bought index futures and stock futures worth Rs 298 cr and 149 cr respectively. DIIs were net buyers to the tune of Rs 417 cr.

 

Rupee depreciated 14 paise to end at 73.43/$.

 

IMF raised India's FY22 GDP growth forecast to 12.5%, up from 11.5% earlier.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.7% and SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 14459, the bottom made Monday, also coincided with the two-third retracement level of the recent 14264-14883 upmove and hence was the immediate support to eye and that 14883, the top made last week, which also coincides with 34-DMA, is the immediate hurdle.

 

Nifty inched up to close at 14683.

 

14883, the top made last week, which also coincides with 34-DMA, continues to be immediate hurdle.

 

14460, the bottom made Monday, which is also the two-third retracement level of the recent 14264-14883 upmove, continues to be immediate support, upon breach of which, 14264, the bottom made in March, would be the crucial support to eye.

 

Monetary Policy Committee is expected to leave key interest rate unchanged and maintain accommodative stance, when decision is announced today after a three-day meeting.