Market holds firm ahead of RBI rate decision

Stocks held firm in afternoon trade as traders awaited the Reserve Bank of India's monetary policy decision. At 13:22 IST, the barometer index, the S&P BSE Sensex, was up 194.20 points or 0.56% at 35,097.41. The Nifty 50 index was up 60.10 points or 0.57% at 10,653.25. The Sensex was trading above the psychologically important 35,000 mark after regaining that level in morning trade.

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) began the second bi-monthly monetary policy meeting on Monday, 4 June 2018. The resolution of the MPC will be unveiled at 14:30 IST today, 6 June 2018.

Among secondary barometers, the BSE Mid-Cap index was up 0.7%. The BSE Small-Cap index was up 0.87%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1481 shares rose and 1007 shares fell. A total of 121 shares were unchanged.

Bharti Airtel (up 3.2%), Tata Motors (up 2.33%), Coal India (up 1.96%), SBI (up 1.63%) and Wipro (up 1.56%) edged higher from the Sensex pack.

Asian Paints (down 0.85%), HDFC (down 0.14%) and ICICI Bank (down 0.12%) edged lower from the Sensex pack.

Cadila Healthcare rose 0.36% after the company announced that the USFDA has completed inspection of company's wholly-owned subsidiary with no observation. The announcement was made before market hours today, 6 June 2018.

Cadila Healthcare said that the USFDA has inspected the manufacturing facility of wholly- owned subsidiary, Alidac Pharmaceuticals, located at SEZ, Ahmedabad from 28 May 2018 to 5 June 2018. At the end of the inspection, no observation (483)is issued. The site manufactures oncology injectables for the regulated markets.

Overseas, European stocks edged higher, underpinned by gains in tech and commodity-related stocks, although trading was cautious amid worries over Italian debt and global trade. Asian stocks were mixed as investors digested trade-related developments and the mixed close on Wall Street. Markets in South Korea were closed on Wednesday.

Media reports suggested that China would buy nearly $70 billion worth of US agriculture and energy products if the Trump administration steps back from tariffs. The US-China talks focused on reducing the United States' $375.20 billion trade deficit with China by facilitating the supply of agricultural and energy products to meet China's growing consumption needs.

In US, the Nasdaq Composite Index registered its second record close in a row Tuesday on the back of a rally in the shares of technology and internet giants. However, the Dow lagged as the stocks of slumping financials and consumer-staples weighed on the blue-chip gauge.

On the data front, the Markit services purchasing managers index for the US in May rose to 56.8 from 54.6. The Institute for Supply Management services index rose to 58.6 in May from 56.8, while a reading of job openings rose to a fresh record in April, reaching 6.7 million after 6.63 million in March.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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