Indian Stock Market waiting RBI policy announcement

AJMER, India - May 2, 2013 - PRLog -- NEW DELHI: The 50-share Nifty index is expected to open higher on Friday tracking strong global cues, while investors will keep a close eye on the outcome of Reserve Bank of India's policy review due later today.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 6 point higher at 6014, indicating a positive opening on the domestic market.

The Reserve Bank of India will hold its annual monetary policy review meet on Friday and the Street is expecting the central bank to cut rates for the third time this year by 25 basis points.

According to an ET Now Poll, 95 per cent of the analysts polled expect the central bank to slash repo rates by 25 bps and just 5 per cent of them expect cut in cash reserve ratio ( CRR) by 50 bps.

The Nifty continued its upward journey and closed near the 6,000 mark on Thursday, led by gains in technology, capital goods, realty and oil & gas sectors.

"RBI monetary policy will be watched by markets and since Nifty has already rallied 500 points any point of time profit booking may come. We advise cautious sign at the current juncture and suggest investors to book profits on rallies," said Swati A. Hotkar, Technical Analyst at  Advisory.

"There is no major changes in chart pattern as such and the Nifty is well placed above the channel indicates that pullback rally or short term uptrend is intact," she added.

If Nifty breaks 5850 levels on downside, we may again retest 5750-5800 mark. Hotkar advise the investors to book the profit on every rise or hold their long position.

Overnight, US stocks ended higher after weekly jobless claims figures pointed to improving labor market conditions.

"The European Central Bank also lifted sentiment, putting the S&P 500 at another all-time closing high, as the ECB cut interest rates for the first time in 10 months and held out the possibility of further action if necessary to boost the euro zone economy," Reuters reported.

The Dow Jones industrial average was up 130.63 points, or 0.89 percent, at 14,831.58. The Standard & Poor's 500 Index was up 14.89 points, or 0.94 percent, at 1,597.59. The Nasdaq Composite Index was up 41.49 points, or 1.26 percent, at 3,340.62.

Asian shares edged higher after an interest rate cut by the European Central Bank buoyed optimism about prospects of turnaround in global economy.

"The ECB's decision came a day after the Federal Reserve recommitted to its aggressive stimulus program and a month after the Bank of Japan stunned markets by promising to inject about $1.4 trillion into the economy to spur growth," said the Reuters report.

U.S. crude oil was trading at $93.88 per barrel.

Hong Kong's Hang Seng index was trading 0.78 per cent higher at 22,845.12. South Korea's Kospi index was trading 0.13 per cent lower at 1954.45. China's Shanghai index was trading 1.3 per cent higher at 2,202.63.

Japanese financial markets are shut for holidays and will reopen on Tuesday. For More Detail Visit
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