Indian markets remain cautious about RBI's monetary policy on Tuesday
Dr. Raghuram Rajan, Governor, Reserve Bank of India will announce the First Bi-monthly Policy Statement for the year 2016-17 on Tuesday, which will determine the direction to be followed by the Indian market in the coming months.
According to media reports, the market is already expecting the central bank to cut interest rates by 25 basis points (bps); therefore, an in-line or less-than-expected rate cut will not augur well for the market.
The Reserve Bank of India will also release the Monetary Policy Report – April 2016 along with the First Bi-monthly Policy Statement for the year 2016-17 on Tuesday.
The he Nikkei/Markit Manufacturing Purchasing Managers’ Index (PMI) indicated on Monday that India’s manufacturing upturn gathered momentum in March, with stronger inflows of new work leading firms to scale up output. Nikkei India Manufacturing Purchasing Managers’ Index (PMI) is a composite single figure indicator of manufacturing performance.The report said that along with improved domestic demand, producers also recorded an increase in new export business. These positive developments encouraged companies to buy more inputs, but workforce numbers were left broadly unchanged. On the price front, cost inflation accelerated, while charges were raised to the greatest extent since November 2014.
On Monday, M&M, Bharti Airtel, Infosys, Tata Motors and Hindalco where among the leading gainers while ITC, Axis Bank and Maruti Suzuki saw a dip in share prices.
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