Stock Market Today: Prior to a rate hike that is widely expected, Indian market benchmarks gained on Wednesday, breaking a four-day losing skid as traders awaited information on the RBI’s plans for combating domestic inflation.
Early trading saw a tiny 35.34 point increase in the BSE Sensex index to 62661.70 while the larger NSE Nifty index opened slightly higher.
According to Prashanth Tapse, Senior Vice President for Research at Mehta Equities, “markets are likely to witness a choppy trend in early trades Wednesday amid weakness in other Asian indices, as investors will be keenly eyeing the RBI’s monetary policy meeting on interest rates.”
Stock Market Today: RBI is widely expected to hike rates
“The market’s mood in the near future will be influenced by the RBI’s pronouncement on the inflation and GDP prospects. Technically, until Nifty clears its record high of 18888, investors should avoid taking big leveraged positions. The support level of 18417 for the Nifty is the line in the sand “Added he.
The RBI is anticipated to raise rates by a more moderate 35 bps after three consecutive 50-bps (basis points) rate increases to control inflation that has remained consistently high.
Federal Reserve will reduce the rate hike cycle
The indexes reached record highs as a result of recent signs of sluggish inflation and the falling price of crude oil, which is favourable for a major crude importer like India.
The RBI meeting and strong US data, however, caused the indexes to vary during the previous three days, which dashed expectations that the Federal Reserve will slow the rate hike cycle.
Brent futures are trading $79.50 per barrel
Investors worldwide tempered their excitement over China’s reopening as reality gnawed away at hopes for a softer economic landing in the United States, halting the rally in global stocks.
The S&P 500 ended a streak of nearly two months overnight by declining for a fourth straight session. Oil has returned to where it was at the beginning of the year as Brent futures are currently trading at around $79.50 per barrel.
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