10 Updates From Stock Markets Today
The gains were broad-based with banking, IT and metal stocks leading the gains. The broader markets also posted strong gains with BSE midcap and smallcap indices rising close to 1.5 per cent.
The Reserve Bank of India is expected to keep interest rates on hold today for the fourth straight meeting but maintain a cautious tone despite a sharper-than-expected pullback in inflation in the last few months.
A Reuters poll showed all 61 respondents expected the RBI to keep the repo rate steady at 6 per cent, its lowest level since November 2010. A majority of the economists polled expect the RBI to only start raising rates in early 2019.
The Monetary Policy Committee (MPC) is likely to stick with its 'neutral' stance and flag uncertainty over the inflation outlook beyond June due to factors such as oil prices and the government's promise of increasing the minimum purchase price of food grains from farmers.
Asian markets rebounded from two-month lows today as global equities recovered from a selloff triggered by escalating China-US trade tensions, with investors hoping a full-blown trade war between the world's two biggest economies can be averted.
Sentiment was lifted as the United States expressed willingness to negotiate a resolution to the trade fight after the proposed US tariffs on $50 billion in Chinese goods prompted a quick response from Beijing that it would retaliate by targeting key American imports. Japan's Nikkei rose over 1.5 per cent while markets in mainland China, and those in Hong Kong and Taiwan, are closed today.
Asked whether the US tariffs announced on Tuesday may never go into effect and may be a negotiating tactic, Trump's top economic adviser, Larry Kudlow, said: "Yes, it's possible. It's part of the process." He called the announcements by the two countries mere opening proposals.
On Tuesday, the Trump administration announced 25 per cent tariffs on $50 billion of annual imports from China, covering around 1,300 industrial technology, transport and medical products.
China's finance ministry then responded with its own penalties on $50 billion of US goods ranging from cars, chemicals and corn to whisky, cigars and tobacco. This had triggered a strong wave of selling pressure in Indian markets on Wednesday.
Overnight, on the Wall Street, the S&P 500 gained 1.16 per cent and the Nasdaq Composite added 1.45 per cent, clawing back heavy losses of more than 1.5 per cent right from earlier in the US session. (With Agency Inputs)