On Wednesday, Indian stocks are expected to start higher, following the lead of their global counterparts. This comes ahead of the Reserve Bank of India’s monetary policy announcement and on the optimism that other major central banks may suspend their interest rate increases.
As of 8:10 a.m. India Standard Time (IST), the value of NSE stock futures listed on the Singapore market increased by 0.11% to 18,699.
Overnight, shares on Wall Street finished higher, with the S&P 500 (.SPX) and Nasdaq Composite (.IXIC) indexes ending at new 2023 highs. This comes ahead of rate decisions from the United States Federal Reserve, the European Central Bank, and the Bank of Japan, which are all due next week.
In light of significant macroeconomic statistics, it is anticipated that the Federal Reserve will choose against increasing interest rates. The majority of Asian markets ended higher.
Additionally, investors are anticipating the RBI’s announcement of the monetary policy on June 8. According to the results of a survey conducted by Reuters among experts, it is anticipated that the central bank will maintain the same key interest rate that it has been using both this week and for the remainder of 2023.
On Tuesday, the Nifty 50 (.NSEI) and the Sensex (.BSESN) indexes were able to turn around earlier losses in the last hour of trading, which allowed them to gain for a third consecutive trading session.
In the lead-up to the RBI’s monetary policy decision, analysts anticipate a further session of stability for the benchmarks. They expect shifting attention to interest-sensitive industries in the near future.
According to preliminary statistics provided by the NSE, foreign institutional investors purchased Indian stocks for a total of 3.86 billion rupees ($47 million) on Tuesday, while local investors sold a net amount of 4.89 billion rupees worth of shares.
Foreign investors’ purchases of Indian shares reached a nine-month high in May, with the financial services industry receiving the majority of those purchases.
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