Markets expect 25 bps interest rate cut

Indian equities markets are closed on Wednesday on occasion of Eid al-Fitr. The benchmark indices BSE Sensex closed at 40,083.54 on Tuesday, comfortably maintaining the 40,000 level anticipating a 25 basis point interest rate cut from RBI.

The decrease in inflation has been a major positive for the government in the past few years. But with a slowdown in growth and consumption, the market is expecting a rate cut of at least 25 bps from the Reserve Bank of India (RBI). RBI's Monetary Policy decision will be announced on Thursday, June 6. Global factors are also likely to affect the rate cut decision.

On Tuesday, the benchmark indices BSE Sensex closed at 40,083.54, down by 184.08 points or 0.46 per cent. Whereas Nifty closed at 12,021.65, a decrease of 66.90 points or 0.55 per cent.

Major global indices closed positive on June 4:

In early trade on Wednesday, Asian markets were upbeat. Hang Seng was at 26,943.95, an increase by 182.43 points or 0.68 per cent and Shanghai Composite was at 2,886.39, an increase of 0.84 per cent as against the previous closing. Nikkei was trading at 20,765.49, a rise of 356.95 points or 1.75 per cent.