Markets likely to be cautious ahead of RBI policy, Gujarat elections
Mumbai: It is likely to be an action-packed week ahead for markets. Investors are expected to be cautious on Reserve Bank of India’s monetary policy review on Wednesday while Gujarat gears up for the assembly polls, the results of which will be declared on 18 December.
“The outcome of upcoming state elections (Gujarat and Himachal Pradesh) in favour of ruling party could be a catalyst for further uptrend. For the week ahead, RBI policy meet is the key event and markets expect a status quo,” said Vinod Nair, head of research at Geojit Financial Services. According to him, in the near-term investors will be cautious due to the concerns on domestic fiscal deficit and rising crude prices.
Jimeet Modi, founder & CEO of Samco Securities Ltd, said that the markets are likely to remain volatile for the week ahead as fresh triggers looks weak going forward. “The markets will be anxious to see the outcome of Gujarat polls,” he added.
According to a Mint poll, the RBI is likely to maintain key interest rates at status quo on inflation worries. Retail inflation or consumer price index based-inflation inched up to a seven-month high of 3.58% in October from 3.28% in September. The central bank will announce the policy review on 6 December after two days of monetary policy committee (MPC) meeting beginning tomorrow.
Among stocks, Infosys will be in focus on Monday after its new chief was announced over the weekend. Salil Satish Parekh has been appointed the new chief executive officer and managing director of Infosys, effective 2 January.
In the primary markets, two issues will open for subscription this week. Multi-speciality hospital chain Shalby Ltd’s Rs504.8 crore initial public offering (IPO) will open on 5 December with a price band of Rs245-248 per share. The offer will close on 7 December.
IPO of Kishore Biyani-led Future Group’s Future Supply Chain Solutions Ltd will open on 6 December. The company has set a price band of Rs660-664 per share for the share sale which will close on 8 December. The logistics company aims to raise Rs650 crore through the IPO.