What will matter is not the RBI policy on Tuesday but the market reaction to it. Nifty will be weak if it closes below 8,350
We had mentioned last week that NSE’s CNX Nifty will struggle to head higher. The 50-stock index on Monday witnessed highly volatile session. After trading in the green for major part of the trading session, the benchmark gave up all the intra-day gains and closed marginally lower.
The S&P BSE Sensex opened at 27,771 while Nifty opened at 8,417. Sensex moved from the low of 27,738 to the high of 27,959 and closed at 27,849 (up 21 points or 0.07%) while Nifty reached up to 8,467 before moving to the low of 8,405 and closed at 8,433 (down 0.25 points). Bank Nifty moved gradually lower today. It opened at 18,721 and immediately hit a high at 18,833. From there, it moved to the low of 18,599 and closed at 18,617 (down 104 points or 0.56%). NSE recorded a volume of 63.24 crore shares. India VIX rose 1.53% to close at 16.9125.
Market looks ahead to the Reserve Bank of India (RBI)’s second bi-monthly monetary policy review Tuesday. The data released by India's statistics office on Friday showed that the Indian economy grew 7.5% in the fourth quarter of last fiscal ended 31 March 2015 over the year ago period, making it the fastest growing large economy in the world. The growth last quarter was better than the revised estimate of 6.6% rise in GDP in the third quarter ended 31 December 2014. Meanwhile, it moderated its GDP growth estimate for the full year (2014-15) from previous projection of 7.4% to 7.3%.
The seasonally adjusted HSBC India Purchasing Managers' Index (PMI) hit a four-month high of 52.6 in May 2015, from 51.3 in April 2015, Markit Economics said today.
Jet fuel price was hiked by a steep 7.5% Monday and rates of non-subsidised cooking gas (LPG) by Rs10.50 per cylinder. Price of aviation turbine fuel (ATF), or jet fuel, in Delhi was raised by Rs3,744.08 per kilolitre (kl), or 7.54%, to Rs53,353.92, oil marketing companies said. The share price of Jet Airways fell by more than 6% on this news and the fall was also due to its poor quarterly results.
The Insurance Regulatory and Development Authority of India (IRDAI) has done away with the capping of insurance business from one insurer by a bank in its latest draft. As compared to the previous draft that mandated banks to cap business from one insurer to 50%, IRDAI has removed this cap.
This year's monsoon may arrive on southern Kerala coast in the next five days as the rains have missed their normal start date of 1st June, weather officials said on Monday. The annual infrastructure output fell 0.4% year-on-year in April, its second straight contraction, dragged down by lower production of electricity, crude oil and cement, government data showed on Monday. The output fell by annual 0.1% in March.
Coming back to the Indian stock market, Neyveli Lignite Corp rose 14.26% to close at Rs83.75 on the BSE. It was the top gainer in ‘A’ group on the BSE. Adani Enterprises fell 10.41% to close at Rs632.70 on the BSE. It was the top loser in ‘A’ group on the BSE.
Larsen & Toubro rose 3.03% to close at Rs1,705.50 on the BSE. It was the top gainer in the Sensex 30 pack. Sun Pharma fell 8.99% to close at Rs878.95 on the BSE. It was the top loser in the pack.
On Friday, US indices closed in the red mainly on the fresh worries about Greece. The US government reported on Friday that the economy contracted 0.7% in the first quarter. That was worse than its initial estimate of growth of 0.2%.
Chicago PMI, a survey of Chicago-area purchasing managers that provides insight into companies' business plans. The Chicago PMI shrank to 46.2 this month from 52.3 in the prior one.
A reading on consumer sentiment showed US consumer optimism in May was higher than expected but still down sharply from the end-of-April reading.
Asian indices showed mixed performance. Shanghai Composite (4.71%) was the top gainer while Taiwan Weighted (0.78%) was the top loser. Growth in China's giant factory sector edged up to a six-month high in May but export demand continued to shrink. The official manufacturing Purchasing Managers' Index (PMI) edged up to 50.2 from April's 50.1. The non-manufacturing Purchasing Managers' Index (PMI) edged down to 53.2, from April's 53.4.
European indices were trading higher. US Futures were trading in the green.