Pre-Market: Markets likely to open positive; RBI policy eyed

Markets are likely to open flat with a positive bias on caution ahead of the RBI monetary policy announcement due later in the day.

The early indicator, SGX Nifty has inched up by 13 points at 7,992 levels.

According to Anand Rathi's morning report, "Nifty needs to hold above 7,900 zones with follow up buying interest to continue the bounce back move towards 8,000 and 8,050 levels. However if it fails to hold 7850 zones then the index may again go lower and consolidate in the trading range between 7,850 and 7,725 zones. Traders are required to take calculated risk ahead of RBI policy, FOMC meet, CPI, IIP and WPI data."

Asian shares edged up on Tuesday, as investors awaited Chinese factory surveys later in the session amid persistent concerns about cooling growth in the world's second-biggest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3% in early trading, while Japan's Nikkei added 0.5%.

Wall Street lost ground overnight, though major US indexes still gained for the second straight month.

RBI Monetary Policy:

The Reserve Bank of India (RBI) will announce its fifth bi-monthly monetary policy decision at 11:00 am today.

Most analysts and market experts feel that the Reserve Bank of India (RBI) will hold its policy interest rate at 6.75% today to stifle inflation.

However, India’s gross domestic product (GDP) for the three-month period ended  September 30 grew 7.4%— a tad higher than the 7% in the previous quarter — with a boost from manufacturing and financial services.  

Stocks to watch:

Rate-sensitive stocks will hog the limelight ahead of the RBI policy meet today.

Meanwhile, shares of auto companies will remain in focus ahead of the monthly sales figures of automobile companies, starting today.

Oil Marketing Companies (OMCs) have slashed petrol prices by 58 paise per litre and prices of diesel by 25 paise per litre to align domestic rates with global petroleum product prices.

Bharti Airtel and Vodafone India might buy additional spectrum in three circles from Videocon due to their acute need of fourth generation (4G) technology based radio waves in Bihar, Uttar Pradesh (UP) East and Haryana circles, rating firm India Ratings said on Monday.  

Emami Paper Mills is investing Rs 1,000 crore to double the capacity of its paperboard unit at Balgopalpur near here in the next three years.  

The beverage arm of the $110-billion (Rs 7 lakh crore) Tata Group on Monday announced foray into the Rs 1,300-crore instant coffee market, with a new brand, Tata Coffee Grand.   

Nestle resumes production of Maggi across the country.    

With Reuters input