Stock Market: Sensex, Nfity and other Indian indices are close today on Eid
The stock market is closed on Wednesday on account of Eid-ul-Fitr, which is celebrated by Muslims at the end of the Islamic holy month of Ramzan every year.
The stock market is closed on Wednesday on account of Eid-ul-Fitr, which is celebrated by Muslims at the end of the Islamic holy month of Ramzan every year. The trading will resume on Thursday when the Reserve Bank of India (RBI) will announce its key decision on interest rates later this week. A day earlier, the BSE S&P Sensex had closed 184 points down from its previous close at 40,084 while the Nifty 50 lost 67 points to 12,022.
The slowdown in economy during January to March quarter has raised prospects of a rate cut by RBI. With inflation subdued at 2.92 per cent in April — well below the RBI`s medium-term target of 4 per cent — investors hope the central bank can cut repo rate by 50 basis points to encourage private investments and consumer spending. Many economists and officials expect the new government to push long-pending reforms in the next parliamentary session beginning on June 17 after a landslide election victory of Prime Minister Narendra Modi-led National Democratic Alliance. market experts are expecting rate cut from the RBI Governor Shaktikanta Das on June 6.
Amar Ambani, President & Research Head, YES Securities said, "The RBI policy on 6th June is going to be a big booster for the stock market. I expect RBI to cut rates by 25 basis points, change their monetary stance to accommodative and strongly address the liquidity deficit, may be even go for a surplus liquidity framework from neutral one presently. Inflation is not of concern and economic growth needs support. This will provide momentum to the market in coming days. I reiterate my Nifty target of 13000 in 2019. Post the Budget, we anticipate space for another 25-basis point rate cut."
Meanwhile, Asian shares tracked Wall Street`s rally on Wednesday after the US central bank comments pointed to increasing prospects of an interest rate cut.The development boosted investor sentiment. Japan`s Nikkei climbed nearly 2 per cent and Chinese shares also rebounded. Hong Kong`s Hang Seng too advanced over half a per cent.Reports quoted Chinese President Xi Jinping as saying the country`s economy is stable, healthy and well placed to meet all risks and challenges.