Shares of rate-sensitive sectors such as banks, automobile and real estate will remain in focus on Tuesday, as the Reserve Bank of India meets for monetary policy review. Market participants expect no change in interest rate. However, most market participants are hoping for reduction in the cash reserve ratio. If the RBI surprises by announcing a rate cut in its main lending, not only shares from the above sectors, but Nifty and Sensex will also see a temporary spurt.
Disinvestment in REC on Wednesday
Shares of Rural Electrification Corporation will turn active on the Government disinvestment plans. The Centre plans to sell a 5 per cent stake in REC on Wednesday to raise about ₹1,600 crore. The REC stock closed at around ₹335. The Centre will sell 4.937 crore shares (face value ₹10) through offer-for-sale. Twenty per cent of those shares will be reserved for retail investors, who will also get a discount of 5 per cent on price. The floor price will be out on Tuesday.
Firm price bodes well for copper mining stocks
Copper rose the most in two weeks as hedge funds and other speculators added to bullish bets, increasing wagers on higher prices to the most since August. It added as much as 3.6 per cent in New York trading, the most since March 23. Copper for May delivery advanced 2 per cent to $2.78 a pound as of 5 pm IST in New York. Shares such as Hindustan Copper, Sesa Sterlite and Nissan Copper may attract buying interest, if the current trend sustains for some more days.