Indices open lower amid mixed global cues; ITC falls post Q4 nos
image for illustrative purpose
The Nifty futures were trading flat around 15,609 level on the Singaporean Exchange. Asian indices were trading mixed, while US markets ended flat.
Brickwork Ratings expects RBI's MPC to maintain status quo on rate cuts in June MPC meeting in view of optimistic Q4 GDP growth.
The better-than-expected GDP numbers provide much-needed comfort to the MPC on the growth outlook. However, with the imposition of partial lockdown-like restrictions to contain the virus spread in several parts of the country, the downside risk on growth recovery has intensified. Hence, the RBI is likely to continue with its accommodative monetary policy stance in the decision of the MPC meeting to be announced on 4 June 2021.
Considering the risk of inflation emanating from the rising commodity prices and input costs, BWR expects the RBI MPC to adopt a cautious approach and hold the repo rate at 4%.
