Market is seen opening lower on negative global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 15 points at the opening bell.
In overseas stock markets, Asian stocks witnessed a mixed trend. US stocks closed sharply lower yesterday, 27 June 2016, extending previous trading session's post-Brexit sell-off with materials leading decliners. Activity in the US services sector remained subdued in June, according to preliminary data released yesterday, 27 June 2016. In a report, market research group Markit said that its flash services purchasing managers' index (PMI) remained unchanged at 51.3 in June.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 146.11 crore yesterday, 27 June 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 147.07 crore yesterday, 27 June 2016, as per provisional data.
Among corporate news, interest rate sensitive banking, automobile and real estate stocks will be in focus after the finance ministry announced that it has initiated the process to constitute Monetary Policy Committee (MPC) under the
Reserve Bank of India Act, 1934. Out of the six members of MPC, three
members will be from the Reserve Bank of India (RBI), including the RBI
Governor, who will be the ex-officio Chairperson of the MPC, the Deputy
Governor, RBI and one officer of RBI. The other three members of MPC
will be appointed by the central government on the recommendations of a
Search-cum-Selection Committee, which will be headed by the Cabinet
Secretary. These three members of MPC will be experts in the field of
economics or banking or finance or monetary policy and will be appointed
for a period of 4 years and will not be eligible for re-appointment. The
meetings of the MPC will be held at least 4 times a year and the MPC
will publicise its decisions after each meeting. A committee-based
approach will add a lot of value and transparency to monetary policy
decisions, the finance ministry said in a statement issued after trading
hours yesterday, 27 June 2016.
Amid a divergent trend among various index constituents, the two key benchmark indices settled near the flat line yesterday, 27 June 2016. The barometer index, the S&P BSE Sensex, rose 5.25 points or 0.02% to settle at 26,402.96.
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