RBI monetary policy to steer markets; rate sensitive stocks, TCS, Zee in focus

By Nasrin Sultana
RBI Governor Shaktikanta Das is to announce decisions of the Monetary Policy Committee at 10 am on Friday.

Reserve Bank of India's monetary policy review is likely to steer markets on Friday. Trends in SGX Nifty indicate a positive opening of Indian benchmark indices. The BSE Sensex ended at 59,677.83, up 488.10 points or 0.82%. The Nifty was at 17,790.35, up 144.35 points or 0.82%.

The central bank is likely to signal a gradual unwinding of emergency liquidity measures introduced after the covid-19 outbreak but keep key interest rates unchanged in its bi-monthly monetary policy review this week, a Mint survey of economists showed.

Rate sensitive stocks like auto, banks and realty will be in focus.

September quarter earnings will also kick-start tomorrow as IT major Tata Consultancy Services will declare its results for Q2FY22.

The National Company Law Appellate Tribunal on Thursday directed the NCLT to provide "reasonable and sufficient opportunity" to Zee Entertainment Enterprises Ltd (ZEEL) to reply to Invesco's plea seeking convening a meeting of the company's shareholders. In a 15-page order, the appellate tribunal said the National Company Law Tribunal (NCLT) committed an "error" by not granting reasonable time to ZEEL to reply to Invesco's plea.

Asian shares rose on Friday as Chinese shares returned from a one week holiday upbeat, tracking a global rally, while investors also eyed key US jobs data for any fresh insight into the timing of Federal Reserve tapering.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%, after rallying 2.1% the day before, its biggest daily gain since August. Japan's Nikkei index advanced 1.8%.

Chinese blue chips gained 0.56% as they resumed trading after being closed for the National Day holiday, while Hong Kong which has been open all week, gained 1%.

Elsewhere, Australian shares rose 0.84%, helped by mining stocks amid surging commodities prices.

Over the past three months, Chinese shares have been battered by regulatory changes, turmoil in the property sector, and more recently a power crunch, but some investors are now starting to see a buying opportunity.

The focus remains on the property market as investors wait to see whether regulators take action to contain the contagion from cash-strapped China Evergrande Group’s debt problems.

US futures rose 0.16% after the US Senate approved legislation to temporarily raise the federal government's $28.4 trillion debt limit and avoid the risk of a historic default later this month.

Overnight, on Wall Street, the Dow Jones Industrial Average gained 0.98%, the S&P 500 rose 0.83% and the Nasdaq Composite moved up 1.05%.

Investors are also keeping an eye on US employment data for September due later on Friday. They expect employment figures that are near consensus will lead the Federal Reserve to indicate at its November meeting when it will begin tapering its massive stimulus program.

US Treasury yields rose ahead of those figures, with volatility at the shortest end of the curve easing as the plan to avoid a default on government debt emerged.

In Asian hours, the benchmark 10-year US Treasury yield rose 1.6 basis points to 1.58887%, its highest since June when it touched 1.594%.

In currency markets, the dollar index, which measures the greenback against a basket of its peers, was little changed at 94.206, not too far from a 12-month high of 94.504 hit in late September, as traders awaited the jobs data.

Oil prices continued to be volatile. Brent crude rose 0.6% to $ 82.44 a barrel, while US crude gained 0.78% to $78.90 a barrel.

(Reuters contributed to the story)

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