InvestorQ : What is the trading view for the Nifty and Sensex for Thursday 07 April?
Khushi Patel made post

What is the trading view for the Nifty and Sensex for Thursday 07 April?

diksha shah answered.
1 year ago

On Wednesday, the Nifty gained 136 points and that was purely a reaction to the RBI policy announcement maintaining status quo on rates keeping the stance accommodative. In addition, the newly proposed continuous OMO in the secondary market would be the RBI’s answer to regulate the yield curve and hopefully keep yields under 6%.

Thanks to the monetary policy, the day belonged to the rate sensitives. The real positive action was seen in the steel stocks after the prices of hot rolled coils and cold rolled coils were once again hiked in tune with the global price trends. Indian prices are still below global prices by about 20% and that is what is boosting Indian steel stocks.

FPI action was marginally positive on Wednesday but not too decisive. There was FPI net buying of Rs.227 crore even as the DFIs also chipped in and bought Rs.381 crore of equities. However, the relative tepid buying action among FPIs is largely indicative that the rally was triggered more by bouts of short covering rather than serious buying.

There has been some pressure on the US markets and also European markets but UK continues to be positive. The big factor to watch out for is the INR, which substantially depreciated on Wednesday after the fear that the glut of liquidity in the Indian markets from the RBI would weaken the rupee versus the US dollar.