Sensex, Nifty Seen Lower Ahead Of RBI Policy Meet

Indian shares may open on a cautious note on Thursday after oil prices jumped over 4 percent overnight on data showing a steeper than expected weekly drop in crude oil inventories and amid expectations that OPEC and its allied producers would extend production curbs.

Investors also await the outcome of the Reserve Bank of India’s (RBI) fifth monetary policy meet of the financial year 2019-20, due later in the day amid expectations the central bank will deliver its sixth straight interest-rate cut despite a spike in inflation.

Benchmark indexes Sensex and the Nifty rose around 0.4 percent on Wednesday after a survey showed that India’s services sector activity recovered in November amid a rise in new business intakes and job creation.

Asian markets traded mostly higher this morning and the dollar weakened on the back of weak U.S. data released overnight, while oil dipped slightly after sharp gains in the previous session.

U.S. stocks rose for the first time in four sessions overnight after reports suggested that a phase-one trade U.S.-China trade deal was still in the works and a partial resolution would be completed before another set of China tariffs kick in on Dec. 15.

The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite rose around half a percent while the S&P 500 added 0.6 percent.

European stocks also closed higher on Wednesday as renewed optimism about a potential U.S.-China trade deal as well as encouraging service sector activity data from China helped investors shrug off weak U.S. data on private sector job growth and service sector activity.

The pan-European Stoxx 600 advanced 1.2 percent. The German DAX rallied 1.2 percent, France’s CAC 40 index climbed 1.3 percent and the U.K.’s FTSE 100 gained 0.4 percent.

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