Sensex was trading flat just ahead of the Reserve Bank of India’s (RBI) policy review meeting,with traders widely expecting a cut in the repo rate,and potentially,a joint cut in the cash reserve ratio.
Sectors sensitive to interest rates such as banks and real estate fell on profit-taking ahead of the announcement,due out at 11 am India time.
These stocks have gained on the rate-easing expectations. The Bank Nifty index,for example,fell 0.78 percent. Lenders have gained 2.15 percent this month as of Monday’s close,outperforming the 1.31 percent fall in the broader Nifty .
The slowdown in growth indicators over the last couple of quarters indicate the negative effect of a tight monetary stance has intensified,Angel Broking said in a note on Tuesday.
Meanwhile,HSBC said moderate growth will help gradually ease core inflation pressures,though it saw upside risks from the weak currency and elevated oil prices.
The country’s main 30-share BSE index was up 0.04 percent,while the 50-share NSE index was down 0.03 percent.
Sensex gains ahead of RBI meet
The BSE benchmark Sensex extended gains for the second straight day early on opening by adding over 18 points in early trade today on selective buying by funds and retail investors ahead of the RBI’ monetary policy review for 2012-13.
The 30-share index,which had gained 56.44 points in the previous session,added another 18.23 points,or 0.11 per cent to 17,169.18.
Mutual Funds Check for top funds
The wide-based National Stock Exchange index Nifty also traded marginally up by 4.40 points,or 0.08 per cent,to 5,230.60.
Brokers said investors turned cautious ahead of the Reserve Bank of India’s meeting today on interest rate and made selective buying.
Stocks of Metal,Realty and Auto sector were trading in the positive zone.
Stocks More on Coal India
Company INFO <a In the Asian region,the Japan's Nikkei was up 0.06 per cent,while Hong Kong's Hang Seng shed 0.06 per cent in the morning trade today. The US Dow Jones Industrial Average ended 0.56 per cent higher in yesterday's trade. Pre Open Indian stocks to watch-April 17
GLOBAL STOCK ROUNDUP
* Asian shares were capped while the euro fell on Tuesday,
as soaring Spanish borrowing costs underscored the fading impact
of the European Central Bank’s bond purchases and stoked
investor nervousness over euro zone debt woes.
*The Dow rose on Monday as robust U.S. retail sales data
helped large-cap consumer stocks,but a 4 per cent slide in Apple
hurt the Nasdaq.
INDIAN STOCKS TO WATCH
* India plans to kick-start stake sales in state-run companies in June – preferably through the auction of shares – to meet a target of 300 billion rupees ($5.65 billion) set for this fiscal year,the official in charge of disinvestment said on Monday.
* Coal India’s board has agreed for the state-run company to sign new guaranteed fuel pacts with power producers and it will pay a penalty of an average of 0.01 per cent of shortfalls in supplies,the company’s chairwoman said on Monday.
* Mindtree’s Jan-March net profit more than doubled to 689 million rupees from 320 million rupees a year ago.
* India’s urban consumer confidence remained weak in March,weighed down by inflationary concerns,a survey released on Monday showed.
Company INFO More on Mindtree
OTHER FACTORS TO WATCH
* Indian rupee seen up on euro gains;RBI key
* Indian bonds seen steady before RBI
* Euro holds gains after short-covering rally
* Oil tumbles 2 pct on early US pipeline reversal
* Foreign institutional investor flows
* For closing rates of Indian ADRs