Pre Market Report, August 4, 2015 | Stocks and Commodities

August 4, 2015
Time: 8.30 am

Pre Market Report:

1. US markets closed lower after a bad economic data.
2. But Asian markets started firm after a news from China that they are bringing in more rules to curb short selling.
3. But China and Hong Kong markets did not react positively to that news when they opened for trading at 7 am IST.
4. So other Asian markets have given up the gains and most markets are trading almost flat some with positive bias and some with negative bias.
5. But all these matters only for the initial part of our trading.
6. What RBI is going to do is very important.
7. Since Bank Nifty has gone up significantly, any disappointment will bring Bank Nifty down.
8. FIIs were turned net buyers in cash market yesterday.
9. Between last RBI policy meet and this meet, there are many changes.
10. One, the worry about monsoon is gone.
11. Crude oil is hitting the lowest levels in 2015 and that will be a good news for both inflation front and foreign reserves front.
12. Global volatility due to Greece issue has subsided.
13. US has not indicated any rate hike in September and of late the economic data coming from US have not been good.
14. There is a hope of GST and Land bill being passed as BJP is compromising on amendments.
15. Last time (4 months before) RBI Governor used his veto power not to cut the rates though majority members favoured rate cut.
16. But this time there is enough noise about Governor's veto power and hence he may not use his veto power this time.
17. So all these changes points towards a rate cut or at least SLR cut followed by Dovish comments.
18. SGX Nifty is trading almost flat.
19. Bharti Airtel will be in focus ahead of its results.
20. Markets will move in a wide range due to RBI policy between 8420 and 8680.