RBI policy: Market Watch: What should equity investors expect from RBI policy review next week? | The Economic Times Podcast

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Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets started the month of June on a weak note, surrendering meagre gains notched up in early trade, as concerns over high inflation and tighter financial conditions weighed on sentiment.

A renewed rise in crude oil prices following a fresh ban on Russian oil imports by the European Union have exacerbated concerns over elevated domestic inflation, stoking speculation of aggressive rate hikes by the RBI. The central bank’s next policy statement is scheduled June 8.

Gains in metal and banking stocks were offset by losses in auto, healthcare and IT scrips, while data showed that India’s economic growth slowed to the lowest in a year in the first three months of 2022.

The 30-share pack Sensex turned negative but managed to close off lows and ended 185.24 points or 0.33 per cent lower at 55,381.17. Its broader peer, Nifty50, also fell 61.80 points or 0.37 per cent to close below the 16,550 levels.

Broader markets were mixed, with the BSE Midcap index falling 0.10 per cent, while the Smallcap index added 0.6 per cent. Fear gauge India VIX rose 1.79 per cent to end at 20.85.

20 stocks on the BSE Sensex declined, with Nestle, Tech Mahindra and Bajaj Finserv each losing 3 per cent. Sun Pharma and HCL Tech lost more than 2 per cent. M&M rose 1.3 per cent, while HDFC gained 1 per cent.

11 stocks hit upper circuit limits, while 6 hit their lower circuits during the day. 28 stocks rose to 52-week highs, while 21 fell to 52-week lows.

We have Ajit Mishra from Religare Broking to share his views on the action and the road ahead:

Welcome to the show, sir:

1. With oil prices hardening again, concerns over inflation have been rekindled afresh. Which are the sectors you would avoid?
2. The RBI’s policy statement is exactly a week away. What can equity investors expect?

We also caught up with Nilesh Jain of Centrum Broking to decode the technical charts for you.

1. The Nifty50 settled below the 16,550 level. What do the technical charts suggest about it?
2. Bank Nifty rose today even as the headline index fell. What is the technical outlook?

Asian markets ended mixed for the day. Major European markets were mostly trading lower in the first few hours of trade. However, US stock futures were up, signalling a firm start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!