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ALL EYES ON RBI’s DECISION ON REPO RATES

On Wednesday, there has been a rise in U.S. stock futures on optimism over U.S.-China trade deals. Both U.S. and Indian stock market opened high with 70 and 200 points respectively. S&P and Nasdaq futures also showed good growth. According to reports U.S. and Chinese officials have resolved most of their issues of their trade dispute and about to close their trade deal. China wanted to remove existing billion dollar worth of US duties on Chinese products and Trump wants China to agree with the necessary measures that ensure China sticks to the deal. Representatives from both the countries- Steven Mnuchin and Premier Liuhe are scheduled to meet today to finalize trade policies and reach to the final decision. European and Asian markets both opened at a positive figure but Indian markets are showing a downward growth now. Reason being the upcoming decision of RBI that can change the market in both positive and negative way. RBI will unveil its first monetary policy of this fiscal year. Industry is expecting that RBI’s lending rate to the banks will reduced by 0.25 percent to boost the economy after the global economic slowdown. This cut in interest rate will provide relief to the borrowers .Heavy impact on stock market could be seen after tomorrow’s decision of RBI over repo rates.