Market is seen opening lower tracking weakness in Asian stocks and overnight decline on Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 59.50 points at the opening bell.
In overseas stock markets, Asian stocks edged lower tracking overnight decline in US markets. US stocks closed lower yesterday, 4 April 2016, as pressure from a decline in oil prices mostly offset gains in health care stocks.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 236.82 crore yesterday, 4 April 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 333.74 crore yesterday, 4 April 2016, as per provisional data.
Bank stocks will be in spotlight as the Reserve Bank of India (RBI) will announce the First Bi-monthly Monetary Policy Statement, 2016-17 at 11:00 IST today, 5 April 2016. Market expectations are that the RBI will cut its benchmark lending rate viz. the repo rate by atleast 25 basis points today, 5 April 2016, with the government sticking to its fiscal deficit target for year 2016-17 in the Union Budget 2016-17 on 29 February 2016. The government's announcement of a reduction in interest rates on small savings schemes for Q1 June 2016 and dovish comments from US Federal Reserve Chairwoman Janet Yellen have reinforced market expectations of a rate cut from the RBI. In a speech in New York on 29 March 2016, Yellen stressed a need for a cautious stance on interest-rate increases in the backdrop of global economic slowdown.
Interest rate sensitive realty and auto stocks will be in focus ahead of RBI monetary policy review. Purchases of both residential and commercial property are largely driven by finance. Purchases of cars, utility vehicles and commercial vehicles are largely driven by finance.
Shares of public sector oil marketing companies (PSU OMCs) will be watched after announcing a hike in petrol and diesel prices. Indian Oil Corporation (IOCL) yesterday, 4 April 2016, announced an increase in the price of petrol and diesel with effect from the midnight of 4/5 April 2016. Petrol price was hiked by Rs 2.19 per litre and diesel price was raised by 98 paise a litre at Delhi (including state levies) with corresponding price revision in other states. After the latest revision, petrol in Delhi costs Rs 61.87 per litre and diesel costs Rs 49.31 a litre.
Power Grid Corporation of India (PGCIL) after market hours yesterday, 4 April 2016, announced that its board at its meeting held on 2 April 2016 approved eight proposals involving an outlay of Rs 3322.60 crore.
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Telecom stocks and index heavyweight Infosys led upmove for key benchmark indices yesterday, 4 April 2016, a day ahead of the Reserve Bank of India's (RBI) monetary policy review. The barometer index, the S&P BSE Sensex, rose 130.01 points or 0.51% to settle at 25,399.65.
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