Sensex, Nifty open in green ahead of monetary policy announcement

Apr 08, 2018, 00:59
Sensex, Nifty open in green ahead of monetary policy announcement

Asian stocks are trading mostly higher, with Japan's Nikkei index rallying as much as 1.6 percent as trade fears eased and the yen weakened on improved risk appetite.

Positive global cues as trade war worries between the United States and China faded too bolstered trading sentiment.

The 30-share Sensex opened positive and advanced to a high of 33505.53 but succumbed to a sudden selloff in the afternoon, hitting a low of 32972.56. The Dow was down by over 500 points, but it managed to end the session with gains of 0.96% at 24,264.

Sensex took a breather on Friday after Thursday's 577 point rally as traders book profit in recent gainers.

The Sensex was down about 10 points at 33,587 while Nifty edged lower at 10,314, down 10 points.

Meanwhile, the Reserve Bank of India (RBI), on Thursday, said that on the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) chose to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at six per cent.

Investors were not keen to expand their portfolios ahead of the corporate earnings season, brokers said. Despite opening on a flat note, the benchmark indices succumbed to global pressures to finally close the day with losses of over one per cent.

USA stocks rebounded from early losses to end sharply higher overnight amid bets that a full-blown trade war between the world's two biggest economies can be averted despite the tit-for-tat tariff threats. "Additionally, traders and investors awaited the outcome of the RBI's first monetary policy meeting of the year", said Karthikraj Lakshmanan, senior fund manager-equities, BNP Paribas Mutual Fund.

Major laggards were Infosys, Tata Motor, SBI, L&T, SBI, Tata Steel, TCS, Hindustan Unilever, M&M, Wipro, Kotak Bank, Hero Motocorp and Maruti Suzuki fall by 1.07percent.