Sensex Rises as PM Modi’s Cabinet Takes Shape, Oil Marketers Lead Gains

Stock markets remain closed for Eid-ul-Fitr on Wednesday

Scholarships will remain closed in India on Wednesday due to Eid-ul-Fitr. Apart from BSE and the National Stock Exchange (NSE), forex markets and commodity courses will also be closed for trading. Eid al-Fitr is a Muslim festival that marks the high point of the fasting month of Ramzan and is celebrated throughout the country. Banks throughout the country will also be closed on Wednesdays.

Benchmark stock indices with modest losses came to an end on Tuesday as investors waited for the Reserve Bank of India (RBI) to decide on interest rates. The Sensex fell 184.08 points, or 0.46 percent, to 40.083.54, while the Nifty 50 index dropped 66.90 points, or 0.55 percent, to 12.021.65.

On the foreign exchange market, the rupee ended the trading session on Tuesday with 69.26 per dollar.

The RBI's six-member Monetary Policy Committee (MPC) started its bi-monthly monetary policy review on Tuesday and will most likely complete the three-day meeting by reducing the repo rate by 6 basis points (bps) on June 6, analysts say, referring to a sharp fall in Gross Domestic Product (GDP) growth in India in 2018-19.

Meanwhile, Asian equities jumped on Wednesday and the Wall Street rally followed after comments from the US central bank pointed to increasing prospects of a rate cut, increasing investor sentiment and lowering the dollar.

MSCI's widest index of Asia-Pacific stocks outside of Japan rose by 0.4 percent, while the Japanese Nikkei average rose by 1.9 percent.

On Wall Street, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite clocked their biggest one-day gain in five months.

On commodity markets, oil prices ended Tuesday as much as 1% higher after a global stock market rally pulled Brent crude oil from a low point four months earlier in the session.

. (tagsToTranslate) BSE Sensex (t) eid (t) eid ul fitr 2019 (t) Eid-ul-Fitr (t) market (t) Nifty (t) rbi (t) RBI monetary policy (t) sensex (t) stock

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