The Indian headline indices- Sensex and Nifty, opened marginally higher on Thursday morning, tracking positive global cues and amid expectations regarding RBI policy rate cut. SGX Nifty was last seen trading at 11,741.50 level, 29 points higher than the previous close. Yesterday the Sensex, Nifty ended near day s low on Skymet s monsoon prediction. While the Sensex closed at 38,877.12 level, 179.53 down, Nifty also ended low at 11,644, 69.20 points low on Wednesday. We take a look at the key factors which would steer the Sensex, Nifty today:
RBI policy rate cut: The monetary policy committee will announce the much-awaited monetary policy today. The market experts are expecting a policy rate cut by at least 25 basis points (bps) amid benign inflation and global slowdown which needs some stimulus by way of repo-rate cut.
Skymet monsoon prediction: Private weather forecaster Skymet on Wednesday predicted below-normal monsoon this year from June to September on account of developing El Nino phenomenon which can cause drought in many regions like India, Australia and Southeast Asia while impacting other parts also.
US-China talk: There is optimism around US-China trade talk. Both the economic giants are making headway in trade talks and have negotiated more than 90% of the trade deal, as per reports. Before resuming their meeting in Washington DC on Wednesday, both the countries had met last week in Beijing to iron out their differences regarding tariffs.
ADB growth forecast: Asian Development Bank has lowered the growth forecast of India for 2019-20 to 7.2% than the earlier forecast of 7.6% in December on account of subdued revenue and global risks surrounding Brexit.