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Sensex, Nifty trade in green ahead of RBI policy while Asian markets trade mixed, FTSE 100 ends flat

BoE kept its benchmark interest rate unchanged but raised concerns of inflation rising above target

Stuti Mishra
Friday 06 August 2021 00:33 EDT
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BoE’s statement leaves pound higher impacting export heavy companies
BoE’s statement leaves pound higher impacting export heavy companies (AFP/Getty)

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India’s benchmark indices started higher but with muted gains as investors await the Reserve Bank of India’s monetary policy outcome. The BSE Sensex is above 54,500 levels, while the Nifty50 held the 16,300-mark.

Asian stock markets are trading mixed on Friday despite positive cues from US peers as Shanghai Composite remains in the red around noon, while Hang Seng is flat and Nikkei is in the green.

Stocks at Wall Street rebounded on Thursday after the fall in the previous session helped by a plethora of positive economic data, including reduced unemployment claims. The Dow Jones Industrial Average rose 167 points, or 0.5 per cent, to 34,960, the S&P 500 gained 16 points, or 0.4 per cent, to 4,418 and the Nasdaq Composite added 61 points, or 0.4 per cent, to 14,842.

London’s FTSE 100 ended flat on Thursday, weighed down by mining and consumer staples stocks, while a stronger pound after Bank of England’s comment about rising inflation also brought export-heavy companies down.

The blue-chip index ended the day down 3 points or 0.1 per cent. Rolls-Royce, however, outperformed, jumping 5.9 per cent to a more-than-one-month high after the engine maker said it was on track to meet its forecasts for this year as cost cuts and asset sales help it weather a slow recovery in long-haul travel.

The domestically focused FTSE 250 ended 0.7 per cent ahead.

Bank of England on Thursday kept its benchmark interest rate unchanged but said that inflation was now on course to rise even further above its 2 per cent target, although it reiterated that higher prices would be temporary.

Additional reporting by agencies

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