BackIndian stock markets may see a positive start; Banking, NBFC stocks in focus
RBI has recommended guarded entry of corporates into banking space, while allowing conversion of big non-banking and financial services companies (NBFCs) into banks and a hike in promoters’ stake to 26% from 15%
PremiumMUMBAI: Indian markets are likely to see a positive start on Monday with banking and non banking stocks in focus.
The SGX Nifty was 0.55% higher in early deals today, indicating a higher start for Indian benchmarks. On Friday, the Sensex had closed 0.7% higher at 43,882 points while Nifty had risen 0.7% to close at 12,859.
The Reserve Bank of India (RBI) harecommended guarded entry of corporates into banking space, while allowing conversion of big non-banking and financial services companies (NBFCs) into banks and a hike in promoters’ stake to 26% from 15%.
Analysts expect large non-bank lenders to gain the most from the RBI panel’s proposal to allow large companies and shadow lenders into banking services.
“If allowed, they would give strong competition to incumbents and may come up with innovative solutions with no legacy baggage. We may see greater damage on the CASA / retail liability front, especially at inefficient banks, as these entities have a strong ecosystem and enjoy high levels of trust among people", said Brokerage firm Motilal Oswal in a recent report.
Markets will eye news flow on vaccine trials amid rising cases of coronavirus across the world.
“We expect volatility to remain high next week, thanks to the scheduled F&O expiry of November month contracts. In the absence of any major event, COVID-related updates and global cues will remain in focus," said Ajit Mishra, VP - Research, Religare Broking Ltd
Reliance Industries Ltd will also be in focus after the Competition Commission of India on Friday approved Future Retail Ltd’s asset sale to oil-to-telecom conglomerate, in a setback for Amazon.com Inc., which had approached the anti-trust watchdog to halt the ₹24,700 crore deal.
Hatsun Agro will see traction on news that the Telengana government has agreed to provide various subsidies for an amount not exceeding ₹25 crore to the company for setting up an ice-cream plant in Govindapur in Sangareddy District.
Bharat Dynamics shares will be in the limelight as the DRDO flagged off the first Varunastra, the heavy weight torpedo, for delivery to the Indian Navy.
Asian shares open marginally higher. Futures for the S&P 500 gained 0.1%, while South Korea’s Kospi index rose 0.1%. Australia’s S&P/ASX 200 Index gained 0.5%.
US markets had closed lower on Friday as investors wrestled with developments on fiscal stimulus, concerns over a lengthy rollout of vaccines, and a growing number of state-level shutdowns to combat the spiraling pandemic.
Investors will focus on the minutes of the most recent Federal Open Market Committee meeting, US jobless claims, GDP and personal spending data - due on Wednesday.
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