Indian shares are moving sideways in early trading on Wednesday, as caution set in after yesterday's surprising rally. Also, Asian markets are turning in a mixed performance, dampening investor sentiment to some extent.
Investors are factoring in something more than 25 basis points rate cut along with 50 bps CRR cut when RBI meets next Monday. Before that, May inflation numbers due out tomorrow, June 15 advance tax numbers and discussions on the presidential candidate could influence investor sentiment, though bigger risks involve around whether Greece remains in the euro.
The benchmark BSE Sensex is largely unchanged, while the broader Nifty index is up a modest 0.1 percent. Second-line stocks are gaining ground, with the BSE mid-cap and small-cap indexes climbing 0.6 percent and 0.8 percent, respectively. Rate-sensitive realty, banking and auto stocks are leading the gainers on rate cut hopes.
Benchmark indexes Sensex and the Nifty climbed around 1.2 percent each on Tuesday, as weak industrial production data spurred hopes that the RBI will cut interest rates aggressively at its upcoming policy meeting next Monday.
by RTT Staff Writer
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