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Market is set for a flat to positive start tracking Nifty futures at the Singapore Stock Exchange (SGX) which indicated a positive start. At 8.30am, SGX Nifty was trading 16.50 points higher at 6169 on Tuesday.
Investors would keenly await the Reserve Bank of India's (RBI's) mid-quarter monetary policy review today and the central bank's guidance will be in focus.
Expectations are high for a rise in overnight borrowing rates for banks in the outcome of Wednesday’s monetary policy review. The Street expects the RBI to raise the repo rate (for short-term borrowing by banks from it) by 25 basis points (bps), the Marginal standing facility (MSF, for overnight borrowing) might also be raised by 25 bps, to maintain the current spread between the two, of 100 bps.
Today's parliament session will also be focus on Tuesday after a parliamentary panel endorsed passing a bill that seeks to keep political parties out of the Right to Information (RTI) Act's purview. Amendments to Lokpal bill and Lokayuktas Bill 2011 will also be taken up by the Lok Sabha. The Rajya Sabha will take up Second Supplementary Demands for Grants.
Asian shares are trading mixed today with Japan's Nikkei up over a percent while Hang Seng index was trading lower. South Korean Kospi is up while marginally while Shanghai index has fallen 0.03%.
US stocks closed weak ahead of the FOMC statement. The Fed has said it would begin to slow the program when certain economic indicators meet its targets. The Dow Jones slipped 9.31 points, or 0.06%, to close at 15,875.26, while Standard & Poor's 500 Index declined 5.54 points, or 0.31 percent, to finish at 1,781.00. The Nasdaq Composite Index fell 5.84 points, or 0.14 percent, to end at 4,023.68.
The policy-setting Federal Open Market Committee is expected to issue a statement late today at the meeting's conclusion. While the Fed isn't expected to start winding down its purchases of USD 85-billion-a-month in bonds until March, recent stronger-than-expected economic data increased the odds that tapering could occur sooner.
Foreign institutional investors (FIIs) were net buyers of Indian shares worth Rs 249.93 crore on Tuesday, shows provisional data from the exchanges.
Sugar stocks could be in focus as an informal group of ministers will meet in Parliament to discuss the sugar bailout package.
