NEW DELHI: The Reserve Bank’s monetary policy review this week will dictate the near-term trend on the bourses, say experts.
Besides, auto stocks will be in focus as companies from this sector will report sales data for March starting Tuesday.
The RBI will undertake its policy review on April 1, 2014 with analysts widely expecting the apex bank will keep interest rates on hold.
“We have some major events and data lined-up and their outcome would play the decisive role in the market movement. The most crucial is the RBI’s policy review. Auto numbers and HSBC PMI data will also hold significant importance,” said Jayant Manglik, president-retail distribution, Religare Securities. Brokers said trends in investment by FIIs and movement of rupee against the dollar will also hold key for the domestic equities. The Lok Sabha elections will be held from April 7 to May 12 and market participants are seen betting on the next government getting a strong mandate.
This has triggered huge FII inflows and the sensex has gained 1,393.32 points or 6.65% this month.
The sensex ended the week at a new closing peak of 22,339.97, a gain of 584.65 points, or 2.69%, over the last week.