Markets rose more than 1.5% on Tuesday, but the Dalal Street is expected to open lower on Wednesday as global markets came under pressure again.
The Sensex and Nifty ended Tuesday's session with strong gains, but a global sell-off and concerns about trade tensions are expected to have an impact on today's opening. All eyes are now on the Reserve Bank of India (RBI), which is scheduled to release its policy decision this morning.
Here are the stocks that will be the focus of Wednesday's trading session.
Weak signals from global markets are increasing pressure on Dalal Street. Other Asian markets began sharply lower.
Overnight, US markets also experienced a significant drop. Shortly after midnight on Wednesday, the US government announced that new tariffs of up to 104% on Chinese imports would go into effect, causing Wall Street to close lower. Concerns regarding stagflation, which is defined by rising prices and sluggish growth in international markets, have been rekindled by these new tariffs.
RBI POLICY IN FOCUS
The outcome of the RBI's Monetary Policy Committee (MPC) meeting, which concludes today, is the primary focus of investor attention. In an attempt to spur growth, the central bank lowered the repo rate by 25 basis points, to 6.25%, at its most recent meeting on February 7.
At 10:00 a.m., the RBI is expected to make its announcement. A rate cut has already been anticipated by many market participants. The central bank may change its policy stance from "neutral" to "accommodative," according to some experts, which would mean future economic support.
Numerous brokerages anticipate that the RBI will take action to maintain excess liquidity in the banking system, guaranteeing that credit is distributed to households and businesses without hiccups.
Ankita Pathak, macro strategist and global equities fund advisor at Ionic Asset by Angel One, told Reuters that, "While India is better positioned than other Asian countries in terms of US tariffs, the ripple effect of a global slowdown will still affect us. The RBI needs to provide assistance."
Citi Research estimates that the new US tariffs could reduce India's GDP by 0.06%. It expects three more 25-basis-point repo rate cuts in 2025, beginning with today's meeting, to support the slowing domestic economy.
