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Market Weekahead: Inflation key as RBI review looms

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Reuters Mumbai
Last Updated : Jan 25 2013 | 5:33 AM IST

India's inflation data will likely shape up as the most important economic indicator ahead of the RBI's policy review on October 30.

A Reuters poll shows wholesale price inflation likely rose to 7.70 percent in September, the highest this year.

India's OIS rates shows investors are cautiously positioned for RBI to cut rates, but remain unconvinced it will happen this month.

The 1-month OIS rate is trading at 7.92 percent, marginally below the RBI's 8.00 percent repo rate.

The rupee is expected to resume its rally next week and rise towards 52 levels, though a broad range of 51.50 to 53.50 over the next month is expected to hold.

Stock movements from corporate earnings results could impact foreign fund flows.

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Among the big companies, Reliance Industries and Axis Bank will post earnings on Monday, while ITC and Tata Consultancy Services will post earnings on Friday.

KEY EVENTS

Monday: September inflation data

Monday: Australian Prime Minister Julia Gillard visits India (October 15-17)

Friday: Weekly bank lending, FX reserves

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First Published: Oct 13 2012 | 6:05 AM IST

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