The BSE Sensex and NSE Nifty on Wednesday are poised for a positive start tracking SGX Nifty and firm global cues. (Express Photo)
The BSE Sensex and NSE Nifty on Wednesday are poised for a positive start tracking SGX Nifty and firm global cues. A 50 basis points repo rate cut by the Reserve Bank of India in its monetary policy review on Tuesday also lifted market sentiments.
At 8.22 am (IST), SGX Nifty was up 30 points, or 0.38 per cent, at 7,881.
Asian stocks took an early positive lead from Wall Street, which ended slightly higher overnight as the US bourses took a breather, with the latest round of China fears that gripped global markets petering out for the moment. Investors also felt relief as shares of mining and trading giant Glencore gained more than 10 per cent overnight.
Hang Seng, Nikkei and Shanghai were up 0.94 per cent, 1.84 per cent and 0.38 per cent at 20749.60, 17243.21 and 3049.68, respectively.
Dow Jones Industrial Average gained 0.30 per cent at 16049.13 on Tuesday.
Back home, key benchmark indices cheered on a rate cut by the RBI on Tuesday. As a result, BSE Sensex and NSE Nifty closed 161.82 points and 47.60 up at 25,778.66 and 7,843.30, respectively.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The surprising act of the RBI is largely guided by the Fed’s decision to hold US rate hike for now. It was also influenced by additional factors like lower trajectory of CPI and strong control in food inflation. The CPI continues to remain below the RBI’s expectation while food inflation has been better managed in spite of the risk of monsoon deficit, under the supervision of the government. On a very healthy note the RBI will continue to be dovish increasing the possibility to have further cut in interest rate by the earlier part of 2016.”
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