Indian equity benchmarks are set to open higher as Nifty futures indicated on the Singapore Exchange ahead of the Reserve Bank of India’s monetary policy decision amid positive cues from global markets. Asian stocks rose on Friday, as Chinese stocks tracked a global rally after a week-long holiday, while investors also looked to key US jobs data for any new insights into the timing of the Federal Reserve’s tapering.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent, after gaining 2.1 per cent a day earlier, its biggest daily gain since August. Japan’s Nikkei index rose 1.8 percent.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.98 per cent, the S&P 500 0.83 per cent and the Nasdaq Composite 1.05 per cent.
Back home, the Monetary Policy Committee is widely expected to maintain status quo on the repo rate to support growth, but some analysts see a slim chance of a token increase in the reverse repo rate.
Market participants will keep a watch on the Reserve Bank’s guidance on liquidity withdrawal, noting that the surplus liquidity in the banking system recently topped Rs 10 lakh crore.
Foreign institutional investors sold shares worth Rs 1,764 crore on Thursday, while domestic institutional investors bought shares worth Rs 2,528.64 crore.
Interest Rate Sensitive – Banking, real estate, auto and financial services stocks will be the focus after the Reserve Bank of India’s monetary policy decision.
Tata Consultancy Services will be on investors’ radar as it announces its second quarter earnings later in the day.
Aditya Birla Capital informed the exchanges that its stake in Aditya Birla Sun Life AMC was reduced to 50.01 per cent after the company’s initial public offering (IPO).