Markets may open with modest gains, RBI policy eyed

The Indian shares extended its winning streak for the third straight session as market logged gains of about 0.70% amid firmness in the global markets. At the closing bell, Nifty 50 index climbed 71 points to finish at 9,860 and the BSE Sensex rose 214 to settle at 31,497. The breadth, indicating the overall health of the market was positive. 

The European indices ended Tuesday’s session with modest gains. The French CAC 40 Index added 0.32% and the FTSE 100 of the UK climbed 0.39%. The German DAX remained closed for a public holiday.   

In US, all three stock market benchmarks established new peaks for a second straight session on Tuesday.  The Dow Jones Industrial Average rose 84 points to 22,642. The Nasdaq Composite Index added 15 points to 6,532 and the S&P 500 gained 5 points to 2,535.   
  
Stock markets in Asia were trading in the positive territory in early deals on Wednesday. The Nikkei 225 has gained 65 points . The Hong Kong’s Hang Seng has edged up 219 points and the China’s Shanghai Composite were closed for a public holiday. 

Domestic markets are likely to open with modest gains tracking supportive leads from the global markets. The Nifty futures on the Singapore Exchange were trading 11 points higher at 9,885. Banks and rate sensitive stocks will be in focus in Wednesday as the Monetary Policy Committee (MPC) will conclude its two day policy meet today, although many expect central bank to maintain status quo on lending rates, but markets will focus on MPC statement along with GDP and CPI projection. OMC’s stocks will be in focus on Wednesday as well after the government announced slashing of excise duty by Rs 2 per litre.