RBI IN FOCUS

 

RBI IN FOCUS

 

WORLD MARKETS

 

Dow and Nasdaq climbed 0.8% each while S & P 500 rose 0.6% ahead of Friday's important jobs report. S & P 500 closed at a new record.

 

Weekly initial claims number came in at 385,000, which was in-line with expectations.

 

The yield on the benchmark 10-year Treasury note rose about 4 basis points to 1.222%. Dollar index was little changed at 92.249. Spot gold slipped 0.4% to $1,804.79 per ounce.

 

Brent as well as WTI crude rose 1.4% each to $71.35 and $69.12 per barrel respectively, on rising Middle East tensions.

 

In Europe, except a flat FTSE, other markets gained 0.3%-0.7%. Bank of England left its monetary policy unchanged but warned of more pronounced inflation in the near term.

 

AT HOME

 

Benchmark indices inched up 0.2%, extending the winning streak to fourth straight day and hitting fresh record highs. Sensex settled at 54493, up 123 points while Nifty added 36 points to finish at 16295. Nifty mid-cap index ended flat while small-cap index fell 0.6%. BSE Telecom index soared 3.4%, becoming top gainer among the sectoral indices, followed by 1.4% higher Metal index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 720 cr, 365 cr and 13 cr respectively. DIIs were net buyers to the tune of Rs 732 cr.

 

Rupee appreciated 2 paise to end at 74.16/$.

 

Government tabled the Taxation Laws Amendment Bill in Lok Sabha, which seeks to withdraw the contentious retrospective tax more than nine years after it came into force.

 

OUTLOOK

 

Today morning, Nikkei is up 0.2% while Hang Seng and Shanghai are down 0.2% and 0.4% respectively. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 16400 was the next upside target to eye.

 

Nifty, after touching a high of 16349, closed at 16295.

 

16400-16425 is the next target zone to eye

 

Immediate support on the hourly chart has moved up to 16040, with the stop-loss of which, trading longs should be held on to.

 

While RBI's Monetary Policy Committee is expected to leave key interest rates unchanged when it announces its decision today, market would watch out for the roadmap for policy normalisation.

 

M & M and Hindalco will report their quarterly earnings today.