While global markets are volatile amidst the fear of U.S.-China trade war, Indian stock markets are rallying ahead of the Reserve Bank of India’s (RBI) first bi-monthly monetary policy review for the fiscal year 2019. India’s two key equity indices Sensex and Nifty posted gains in the market and continued to trade in green on Thursday.
Sensex gained more than 400 points compared to yesterday’s closing trade, and it is currently trading at a value over 33,400. Nifty, on the other hand, has gained more than a 100 points to reach a value over 10,250. The surge in Indian stock exchanges reflected a market-wide sentiment as almost all the 31 stocks of Sensex and 50 stocks of Nifty traded in green.
Some of the top gainers in the market include Tata Steel, Adani Ports, Yes Bank, IndusInd Bank, Infosys, Kotak Mahindra Bank, Maruti Suzuki, Bharti Airtel, Bajaj Auto, etc. The rally, which started within minutes of the opening of the market, continues until the time of writing this post.
The two day (April 4 & 5) RBI monetary policy meeting for the current fiscal year is all set to conclude today at 2.30 pm. The policy meeting chaired by RBI Governor Urijit Patel will take major decisions on various key interest rates.
Experts believe that there will be no major changes in this policy review. The repo rate has remained unchanged over the last three policy review meetings, and this is expected to continue in this meeting too. The RBI is expected to take a neutral stance on various key lending rates in the current policy review. The last change was made in August 2017 when the RBI cut the repo rate by 25 basis points to 6%.
In the global stage, a full-blown trade war between the United States and China is expected to take place after the former imposed tariffs on various Chinese goods. China has already decided to retaliate with its own set of tariffs on US goods. This development is likely to affect markets across the world in the coming days.