Domestic stock markets had a slightly positive opening ahead of the announcement of the monetary policy decision by RBI Governor Shaktikanta Das. At 9:18 a.m., the BSE Sensex was trading at 49,338.75, up 128.55 points or 0.28% and the NSE Nifty was at 14,725.50, up 43.05 points or 0.30 %. The larger markets are also trading in the green, with the BSE Midcap and Smallcap indices edging up 0.3% each.
All BSE sector indices are trading in the green, with the metals and oil indices each gaining more than one percent.
Reserve Bank of India Governor Shaktikanta Das will announce the monetary policy decision following a scheduled Monetary Policy Committee (MPC) review that began on Monday. Experts believe the central bank will maintain the status quo on policy rates during the first bimonthly monetary policy review for the new budget, as the pandemic poses a renewed threat to economic growth.
Overnight, the S&P 500 slipped but remained close to closing records posted in consecutive sessions as investors weighed stronger US economic data against nervousness over upcoming quarterly earnings reports.
The Dow Jones fell 0.29%, the S&P 500 fell 0.10% and the Nasdaq Composite fell 0.05%.
Oil prices edged up Wednesday amid prospects of stronger global economic growth with increased COVID-19 vaccinations and a report that inventories of crude in the United States, the largest consumer of fuel in the world, have fallen.
Brent futures for June rose 34 cents, or 0.5 percent, to $ 63.08 a barrel at 0123 GMT and U.S. West Texas Intermediate crude for May was up 32 cents, or 0, 5 percent, to $ 59.65.
Meanwhile, the IMF has projected a 12.5% growth rate for India in 2021. This is stronger than China, the only major economy to have recorded a positive growth rate last year for the COVID-19 pandemic.
On the specific stocks front, Adani Ports, Tata Steel, Powergrid and Bharti Airtel gained 1.6% to 3.1% to top the list of BSE winners. Tital, Hindalco and Reliance Industries are the other big winners among BSE stocks.
On the flip side, IT stocks are trading weakly, with TCS, Tech Mahindra and Wipro losing around half a percent each on BSE.
The scope of the BSE market is strong. Out of 2,099 shares traded on the BSE, 1,425 shares rose against 591 declines.