Reuters Market Eye - Hawkish comments by Reserve Bank of India Governor Raghuram Rajan a few days ahead of a rate decision on Tuesday as well as expiry of January derivatives contracts on Thursday may weigh on Indian shares in the coming week.
After the hawkish report on taming elevated retail prices, Rajan was quoted as saying inflation was a "destructive disease" that was forcing the bank to keep interest rates high, according to a Press Trust of India report carried by the Economic Times newspaper's website.
Rate-sensitive stocks would be further watched amid key blue chip earnings, including Maruti Suzuki India
Market participants feel the newly found fears of sustained period of high interest rates, mixed set of earnings, at a time when Indian shares are flirting with record high levels, can make India "a good short".
Minutes of the U.S. Federal Reserve December meeting, due on Thursday, for insights on the voting members stance on the bond-buying programme would provide cues on overseas investor liquidity.
Traders will also scrutinise operational earnings of telecom operators, including Idea Cellular
