New Delhi: The Reserve Bank of India (RBI) will come out with its mid-quarter policy review on Wednesday. With the recent surge in inflation, a rate hike looks imminent. A poll conducted by CNBC-TV18 shows that 90 per cent of the respondents expect that the RBI will hike repo rate by 25 basis points.
And all our respondents feel that the central bank will keep cash reserve ratio unchanged. Market participants say that a 25bps rate hike is factored in. On Tuesday, the Sensex slipped 47.38 points to close at 20,612.14, and the Nifty fell 15.65 points to 6,139.05, continuing weakness for the sixth straight session. Globally, markets traded on a cautious note with the US markets ending slightly lower ahead of Fed taper decision. European markets too closed lower.
Meanwhile, Asian markets opened higher in nervous trade on Wednesday morning, but Nikkei is up more than a percent following strong export data. Another key cue for global markets - the much anticipated two-day meeting of the Federal Open Market Committee began on Tuesday. Investors are waiting to see if the Federal Reserve will announce a scaling back of its USD 85 billion monthly bond-buying program. An announcement is expected on Wednesday night.
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