A morning walk down Dalal Street: Investors likely to be in wait-and-watch mode with eye on RBI policy

Indian markets staged a smart comeback on Tuesday with benchmark indices hitting a fresh record high. The S&P BSE Sensex hit a record high of 37,644 while for Nifty it rose above 11,350 to hit a record high of 11,366.

Even as high fiscal deficit numbers failed to dent market sentiment. 

India reported a fiscal deficit of USD 62.57 billion for April-June, or 68.7 percent of the budgeted target for the current fiscal year compared with 80.8 percent a year ago.

Infrastructure sector growth jumps to a 7-month high of 6.7 percent in June. The growth rate in May was 4.3 percent. 

For today, earnings, as well as central bankers’ action, will be in focus. Investors are likely to be in a wait-and-watch mode ahead of RBI policy outcome on Wednesday as well as an outcome from FOMC meeting which will be out later in the night.

Most experts feel that RBI is likely to keep the holds steady in August policy meeting. A similar outcome is expected in the US FOMC meet.