Benchmark indices are trading lower with Nifty50 slipping below 11,300 levels as investors await the outcome of RBI’s third bi-monthly monetary policy meet for 2018-2019, due tomorrow.
The six-member monetary policy committee of the central bank headed by Governor Urjit Patel in its June meet hiked the repo rate by 25 basis points to 6.25 per cent, after more than four years.
Retail inflation touched the 5 per cent mark in June, compared to 4.87 per cent in May, and has gone beyond the RBI’s revised projection of 4.8-4.9 per cent for the first half of the current fiscal year.
The higher inflation last month comes in the backdrop of rising global crude oil prices which have been ruling at over $75 a barrel.
Stock specific action will also be in focus with over 100 companies reporting their June-quarter earnings today including Vedanta, Tata Motors, Blue Dart, UPL and Tech Mahindra among others.
Globally, Asian share markets weakened on Tuesday, taking cues from the rout in global technology shares while the yen edged higher ahead of the Bank of Japan’s rate review, at which it could flag a shift away from its massive monetary stimulus.
Japan’s Nikkei fell 0.5 per cent. South Korea’s Kospi index dipped 0.1 per cent despite solid second-quarter results from Samsung Electronics which posted a 5.7 per cent rise in profit.
Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan was mostly unchanged at 543.23 as were Australian shares .