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Markets are likely to open flat with a positive bias on caution ahead of the RBI monetary policy announcement due later in the day.
MSCI's broadest index of Asia-Pacific shares outside Japan traded little changed. Tokyo's Nikkei inched up 0.1 percent. SGX Nifty is quoting at 7,725.00, up by 2 points.
US stocks rallied on Monday, lifted by Portugal's decision to rescue Banco Espirito Santo and outsize earnings from Warren Buffett's Berkshire Hathaway.
RBI Monetary Policy:
Amid fears of a poor monsoon impacting food inflation, the Reserve Bank may opt for status quo on interest rate in its bi-monthly monetary policy review to be announced later Tuesday.
Stubborn food inflation at over 8% mark will likely weigh heavily on the Reserve Bank, which has been maintaining that containing inflation is its top priority.
The repo rate, or the rate at which the RBI lends to banks, the cash reserve ratio (CRR ) and the statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must park with the RBI, will be closely watched by investors.
Stocks to watch:
Kotak Mahindra Bank plans to raise up to Rs 300 crore through infrastructure bonds, rated 'AAA/stable' by CRISIL. The rating agency said given the exemption from statutory reserve requirements and priority sector obligations, these bonds would be cost-effective.
The economic offences wing (EOW) of the city police on Monday filed a 9,360-page chargesheet against Jignesh Shah (pictured), chairman of Financial Technologies India Ltd (FTIL), in the Rs 5,574-crore default scam case at National Spot Exchange Ltd (NSEL). The chargesheet is the third in the NSEL case.
Petronet LNG Ltd, India’s state-owned importer of natural gas and operator of Liquefied Natural Gas (LNG) terminals, has posted a 30% drop in net profit for the quarter ended June on lower margins.
ING Vysya Bank has proposed to raise up to Rs 700 crore on private placement basis by way of issue of securities including but not limited to bonds and non-convertible debentures. The funds will enable the bank to augment its capital under Basel-III requirements and meet its growth plans.
ITC has increased the prices of some of its cigarette brands by up to 23%. While the new stocks with revised prices are yet to hit the market, consumers are already being asked to pay more than the maximum retail price printed on cigarette packs.
Indian Power Corporation Ltd (IPCL), formerly DPSC, today reported a 40 per cent increase in net profit at Rs 5.73 crore for the first quarter ended June.The company had reported a net profit Rs 4.10 crore in the corresponding period last financial year.
