Market may open on weak note
03-Apr-18   08:27 Hrs IST

Domestic stocks are headed for a weak start on negative Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 60 points at the opening bell.

Traders and investors are awaiting the outcome of the Reserve Bank of India's (RBI) monetary policy meeting. The RBI's Monetary Policy Committee (MPC) meets on 4 April 2018 and 5 April 2018 for the first bi-monthly monetary policy for 2018-2019. The resolution of the MPC will be announced at 14:30 IST on 5 April 2018.

In its last meeting on 7 February 2018, RBI decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6%. Consequently, the reverse repo rate under the LAF remains at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 6.25%.

Markit Economics will today, 3 April 2018 unveil the result of a monthly survey on the performance of India's manufacturing sector in March 2018. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 52.1 in February 2018 from 52.4 in January 2018.

Overseas, Asian stocks declined as a sell-off in once much-favored US technology shares deepened and volatility soared. US stocks fell sharply yesterday, 2 April 2018 driven by both uncertainty surrounding trade policy and weakness in the large-capitalization technology and internet sectors.

The IHS Markit manufacturing purchasing managers index hit a three-year high of 55.6 in March, up from 55.3. The ISM manufacturing report for the same month came in at 59.3, compared with a previous monthly reading of 60.8. A reading of 50 or above indicates improving conditions.

Back home, domestic stocks logged modest gains in steady session of trade led by index heavyweights HDFC Bank, Kotak Mahindra Bank and Reliance Industries. The Sensex gained 286.68 points or 0.87% to settle at 33,255.36, its highest closing level since 15 March 2018.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 689.75 crore yesterday, 2 April 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 413.16 crore yesterday, 2 April 2018, as per provisional data.

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