Market may open higher
Published on Feb 23, 2023 08:36
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 48 points at the opening bell.
The monetary policy committee is expected to remain in a tightening mode, but there is uncertainty about its trajectory, said Reserve Bank of India (RBI) Governor Shaktikanta Das in the minutes of the latest MPC meeting published on Wednesday. The RBI earlier this month raised the repo rate to 6.5%, while keeping the option of rate hikes open amid stubborn core inflation.
Overseas, Asian stocks are trading mixed on Thursday after the U.S. Federal Reserve released the minutes of its most recent meeting that showed central bank members are still committed to fighting inflation with rate hikes. Japanese market is closed today for the Emperor`s birthday.
The Bank of Korea held its interest rates at 3.5%, a first in nearly a year of rate hikes, and in line with expectations.
Wall Street ended broadly lower on Wednesday, with investors cautious despite the latest guidance on rate policy from the US central bank showing few surprises.
Minutes from the Federal Reserve`s January 31-February 1 meeting said that "almost all" Fed officials agreed to slow the pace of increases in interest rates to a quarter of a percentage point.
Back home, the frontline equity indices slumped on Wednesday, extending losses for the fourth trading session. The barometer index, the S&P BSE Sensex dropped 927.74 points or 1.53% to 59,744.98. The Nifty 50 index lost 272.40 points or 1.53% to 17,554.30.
Foreign portfolio investors (FPIs) sold shares worth Rs 579.82 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 371.56 crore in the Indian equity market on 22 February, provisional data showed.
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