The domestic stock markets had a mildly positive opening ahead of the monetary policy decision announcement by RBI Governor Shaktikanta Das. At 9:18 am, the BSE Sensex was trading at 49,338.75, higher by 128.55 points or 0.28 per cent and the NSE Nifty was at 14,725.50, up 43.05 points or 0.30 per cent. The broader markets are also trading in the green, with the BSE Midcap and Smallcap indices edging higher by 0.3 per cent each.
All the BSE sectoral indices are trading in the green, with the metal and oil indices gaining more than a per cent each.
Reserve Bank of India Governor Shaktikanta Das will announce the monetary policy decision, at the end of a scheduled review of the Monetary Policy Committee (MPC) that began on Monday. Experts reckon that the central bank will maintain status quo on policy rates at the first bi-monthly monetary policy review for the new fiscal as the pandemic poses a renewed threat to economic growth.
Overnight, the S&P 500 slipped but stayed near closing record highs posted in consecutive sessions, as investors weighed more strong US economic data against nervousness about upcoming quarterly earnings reports.
The Dow Jones fell 0.29 per cent, the S&P 500 lost 0.10 per cent and Nasdaq Composite dropped 0.05 per cent.
Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid increased COVID-19 vaccinations and a report that crude inventories in the United States, the world’s largest fuel consumer, fell.
Brent crude futures for June rose by 34 cents, or 0.5 per cent, to $ 63.08 a barrel by 0123 GMT and US West Texas Intermediate crude for May was up 32 cents, or 0.5 per cent, to $ 59.65.
Meanwhile, the IMF has projected a growth rate of 12.5 per cent for India in 2021. This is stronger than China, the only major economy to register a positive growth rate last year during the COVID-19 pandemic.
On the stock-specific front, Adani Ports, Tata Steel, Powergrid and Bharti Airtel have gained 1.6 per cent to 3.1 per cent to top the gainers list on the BSE. Tital, Hindalco and Reliance Industries are the other significant gainers among BSE stocks.
On the other hand, IT stocks are trading weak, with TCS, Tech Mahindra and Wipro losing around half a per cent each on the BSE.
The BSE market breadth is strong. Out of 2,099 stocks traded on the BSE, there were 1,425 advancing stocks as against 591 declines.