The Reserve Bank of India’s bi-monthly monetary policy meeting, that began on Monday with the decision due on June 6 (Thursday), will be keenly watched by the investors on Tuesday. According to news reports, expectations are that at least a 25 basis points (bps) rate cut can be expected in the June policy.
Additionally, movement of rupee against the US dollar, FII inflows, crude oil prices, and global developments will also play a key role.
On Monday, benchmark indices S&P BSE Sensex and the Nifty50 settled at their fresh closing peaks of 40,268 and 12,089 levels, respectively. In the intra-day trade, the indices hit their respective lifetime highs of 40,309 and 12,103.
The rupee appreciated by 44 paise to 69.26 against the US dollar.
Global cues
Asian stocks were trading cautiously on Tuesday with Japan’s Nikkei and South Korea’s Kospi losing 0.1 per cent each in the early morning deals.
On Wall Street, the Dow Jones Industrial Average added 5 points, during the overnight trade on Monday, to settle at 24,820 while the Nasdaq slipped 120 points to close at 7,333 levels. The S&P500 shed 8 points to end at 2,744 levels.
In commodities, oil prices fell amid a global economic slowdown triggering calls in the producer club OPEC for supply cuts to be extended.
Brent crude futures were at $60.88 at around 6:00 am, 0.7 per cent below last session’s close.
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