Markets open flat as RBI readies 5th bi-monthly monetary policy

Key Highlights

• Sensex was nearing the 32,800 mark in early trade session.
• Nifty 50 was down 0.29% below the 10,100 mark.
• Rupee opened weaker against the dollar.

Indian equity markets opened with little change on Wednesday ahead of the Reserve Bank of India’s decision on the bi-monthly monetary policy.

The 30-scrip BSE Sensex opened 0.01% or 3.94 points lower at 32,798.50 points.

While the bigger 50-scrip NSE Nifty index was trading 0.29% or 29.45 points down below the 10,100 mark at 10,088.80 points.

In the pre-market open BSE Sensex was trading flat with 0.04% down at 32,789.61 points.

At 0927 hours Sensex dipped 0.21% or 67.33 points to trade at 32,735.11 points.

MSCI Asia Pacific Index was down 0.4% as Asian stocks were poised for its longest losing streak in two years, as per a Bloomberg report.

Nifty 50 fell 0.1% on Tuesday to 10,118.25 points ahead of the fifth bi-monthly monetary policy. It had dropped to a three-week low.

Many analysts are of the opinion that the Monetary Policy Committee of the RBI will keep rates unchanged for fear of rising inflationary pressures in the economy. Current repurchase rate stands at 6%.

However there were a few who predicted a 25 basis point cut to 5.75%.

The Indian National Rupee opened weaker against the dollar rate on Wednesday. It was trading at Rs 64.37 against the US dollar in early trade session. It was up 15 paise at 64.22 in Tuesday's trade.

The rupee closed steady on Tuesday at 64.38 against the US dollar amid a caution ahead of the RBI policy decision.

Among the stocks to watch today as per Bloomberg data, Amtek Auto, Aurobindo Pharma, Bharat Financial and Binani Industries to name a few.

Gainers in early trade session at 0927 hours on BSE Sensex were – Videocon Industries (4.80%), Aegis Logistics (3.50%), Bajaj Electronics (3.36%) and Sobha Ltd (2.66%).

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• Rate cut dilemma remains as RBI wary on Inflation