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US-China Trade War, RBI Policy Meet, and Top Cues in Focus Today
Thu, 5 Apr Pre-Open

Share markets in India closed on a negative note yesterday. Losses were seen across most sectors with stocks in the consumer durables sector and stocks in the metal sector leading the losses.

At the closing bell yesterday, the BSE Sensex stood lower by 352 points (down 1%) and the NSE Nifty closed down by 117 points (down 1.1%). The BSE Mid Cap index ended the day down 0.9%, while the BSE Small Cap index ended the day down by 1.1%.

Top Stocks in Focus Today

Zensar Technologies share price will be in focus today. The share of the company witnessed buying interest yesterday after the company won a four-year, multi-million dollar contract from the city of San Diego for network services.

From the airlines sector, market participants will be tracking Jet Airways share price. The stock of the company witnessed buying interest yesterday on news that it has entered into an agreement with Boeing to buy 75 B-737 Max Aircraft.

ICICI Securities share price and Mishra Dhatu Nigam share price (MIDHANI) will also be in focus today as both the company made their market debut on the BSE and the NSE yesterday.

From the pharma space, Akzo Nobel share price will be in focus today as the company has informed bourses that its board will meet on April 6 to consider a proposal to buyback its equity shares.

Market participants will be tracking Tata Motors share price today. The stock of the company witnessed buying interest yesterday after it sold 187,321 units in the April 2017-March 2018 period, growing at a rate of 22%. Tata Motors has become the fourth-largest passenger vehicle (PV) maker by dethroning Honda Cars Indian in the FY18.

US-China Trade War

The ongoing trade war between US and China is showing no signs of stopping, with China imposing fresh tariffs on US goods.

China hit back at the Trump administration's plans to slap tariffs on US$ 50 billion in Chinese goods, retaliating with a list of similar duties on key US imports including soybeans, planes, cars, whiskey and chemicals.

China said it would levy 25% tariffs on imports of 106 US products.

Chinese retaliation for the Trump administration's latest move had been widely expected. Chinese officials had promised a proportional response if the Trump administration went ahead this week with the next step toward broad tariffs on Chinese goods.

The tit-for-tat tariffs are part of a wider clash looming over trade between the world's two biggest economies. Stock markets around the world have taken a hit in recent weeks as Washington and Beijing have escalated their trade dispute.

RBI Policy Decision Out Today

Market participants will be tracking the first bi-monthly RBI monetary policy for the new fiscal 2018-19. The Reserve Bank of India (RBI) will today make public the resolution of the Monetary Policy Committee (MPC) and also declare its decision on key interest rates.

There's little hope of a cut in the key policy rate because of the rising global crude oil prices. Note that the central bank has maintained a status-quo on the key short-term borrowing rate (repo) in its last three policy meets. The benchmark lending rate was reduced by 0.25 percentage points to 6% last August, bringing it to a 6-year low.

The outcome of the meeting is keenly awaited amidst pressure on RBI to cut interest rates in the wake of declining retail inflation and the need to fuel economic growth.

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