Indices may open higher; RBI policy decision eyed

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 66 points at the opening bell.

The RBI policy review meeting began on 6 February and concludes today, 8 February 2023. The central bank is projected to raise the repo rate but at a slower pace. In its December monetary policy committee meeting, the RBI raised the policy repo rate by 35 basis points (bps) to 6.25%.

Global markets:

Overseas, Asian stocks traded mixed on Wednesday, as Federal Reserve Chairman Jerome Powell overnight acknowledged that inflation is declining, a sign the central bank may soon pause its rate hikes.

US stocks advanced on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank might need to tame inflation.

US inflation is starting to cool but the road ahead will likely be long and bumpy, Federal Reserve Chair Jerome Powell warned Tuesday, adding that stronger-than-expected economic data could bring more rate hikes.

Domestic markets:

Back home, the domestic equity barometers ended with modest losses on Tuesday. The barometer index, the S&P BSE Sensex declined 220.86 points or 0.37% to 60,286.04. The Nifty 50 index lost 43.10 points or 0.24% to 17,721.50.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,559.96 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 639.82 crore in the Indian equity market on 7 February, provisional data showed.

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