Domestic cues will take centre-stage today as traders eye the Reserve Bank of India’s (RBI’s) review of the Monetary Policy later in the day. Although bankers expect the central bank to cut the Cash Reserve Ratio (CRR) by up to 0.5 per cent, a rate cut seems unlikely given the elevated inflation level.
In global markets, US stocks closed mostly flat on Monday. Asian shares paused on Tuesday as investors grew cautious ahead of monetary policy meetings by the European Central Bank and the US Federal Reserve.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, while Japan's Nikkei stock average opened down 0.4 per cent.
Back home, the Nifty is likely to seek support around 5,170 – 5,150, while it faces resistance around 5,230 – 5,250, technical analysts suggest. At 705 am Indian Standard Time, the SGX Nifty was trading flat at 5,223.
Among individual counters, keep a tab on rate sensitive stocks such as banks, autos and realty as they will react to the RBI’s statements.
GAIL, Oriental Bank of Commerce and Muthoot Finance are some of the stocks that will react to their June quarter results that were announced on Monday.
SpiceJet could also be in focus on reports that ace investor, Rakesh Jhunjhunwala, has picked up 2.5 million shares in the airline.
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