BSE Sensex, NSE Nifty are likely to open flat ahead of RBI’s monetary policy meeting and on disappointing US wage growth data that dented prospects for an early interest rate hike by the Federal Reserve.
Market sentiments would be driven by RBI’s monetary policy meeting schedule for tomorrow and Hero Moto and HCL Tech, both of which will be announcing their quarterly numbers today.
“In the RBI meeting on August 4, if the interest rate is reduced, this would act as a short-term trigger for a strong bounce back for PSU banks,” said Jimeet Modi, CEO, SAMCO Securities.
Besides, progress of monsoon, investment trend by overseas investors and rupee movement would influence trading at the bourses.
Over the past week, the BSE Sensex ended on a muted note, showing a marginal gain of 2.25 points at 28,114.56.
On Monday, Asian shares dipped taking its cues from lower Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent. Japan’s Nikkei fell 0.2 percent and South Korea’s Kospi lost 0.5 percent.
Australian shares slipped on Monday as miners were sold off after a survey showed weak factory activity in China – a major buyer of Australia’s resources.