RBI's monetary policy review to dictate trend on bourses

The Reserve Bank of India's (RBI) monetary policy review on Tuesday will dictate the

RELATED ARTICLES

trend on the bourses this week, experts said.

Besides, automobile stocks will be in focus as companies from this sector will unveil their monthly sales data for May.

With Q4 (March) quarter earnings season over, trend in investment by foreign institutional investors, global cues and movement of rupee against the dollar will dictate trend at the domestic bourses.

"Now participants' reaction on GDP number would set the tone for the markets on Monday. We believe any decline or fall in the index would attract fresh participants (both traders & investors) in the markets as there's a feeling of being left-out is lingering in the markets," said Jayant Manglik, President-retail distribution, Religare Securities.

India's economic growth remained below the 5 per cent mark for the second year in a row at 4.7 per cent in 2013-14.

The economic growth remained subdued at 4.6 per cent in the fourth quarter of 2013-14 and during the entire fiscal, mainly due to a decline in manufacturing and mining output.

On the RBI policy, Shrikant Chouhan, Head-Technical Research, Kotak Securities, said: "We are expecting surprises from the credit policy on the positive side even though the consensus is close to unchanged."

Marketmen said that the next major trigger for the market is the Union Budget for 2014-15 which is expected in July.

On a weekly basis, the Sensex fell 476 points. This was its biggest loss since the week ending January 31, 2014 when it had weakened by 619.71 points.

For the month, the Sensex gained a whopping 1,800 points -- logging its best monthly performance in recent times.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • The govt needs to spend its cash without being frugal or wasteful

    Increased government spending can provide a temporary stimulus to demand and output. This is Economics 101.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Roopen Roy

Livability as a competitive advantage

Some CEOs and policymakers argue forcefully that distance is of ...

Rajgopal Nidamboor

The submarine element of your mind

We are all aware of the power of our will ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture