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Markets are likely to be all eyes and ears to the RBI monetary policy today, with the rally either strengthening or fizzling out.
At 08:10AM, the SGX Nifty was flat at 6,145.
The new Reserve Bank of India chief Raghuram Rajan will makes his first monetary policy statement today with expectations that he may scale back some of the emergency measures that helped the rupee bounce from a record low.
It is widely expected that the RBI chief is expected to leave key policy rates unchanged in his first monetary policy and continue emergency cash tightening measures initiated in-mid July to stabilise the rupee, and check racing inflation.
Meanwhile, U.S. stocks retreated slightly on Thursday as investors paused after the Federal Reserve's decision to keep its stimulus intact sparked a rally that lifted the Dow and S&P 500 to record highs.
However, Fed tapering expectations were kept alive by data on Thursday showing U.S. home resales surged in August to a 6-1/2-year high and factories grew busier in the Mid-Atlantic region this month.
The Dow Jones industrial average fell 0.26 percent, to 15,636, the S&P 500 lost 0.18 percent, to 1,722 and the Nasdaq Composite added 0.15 percent, to 3,789.
Asian shares paused on Friday as investors sat back to ponder the U.S. Federal Reserve's policy outlook, a day after the world's most powerful central bank triggered a global rally in riskier asset markets with an unexpected decision to maintain its stimulus program.
Japanese shares were up 0.2 percent in early trade. Markets in China and South Korea were closed for the mid-autumn holiday.
Stocks to Watch
Rate sensitives will be in focus.
Ranbaxy may again resume its downtrend as the company's only US facility is learnt to be under surveillance of the US Food and Drug Administration (FDA).
UltraTech Cement may take a hit as its recently acquired Jaypee's Gujarat plant has run into legal trouble.
