Reuters Market Eye – Indian shares are expected to falter, with banks remaining weak ahead of the Reserve Bank of India‘s policy review on Tuesday.
The review comes after the RBI’s decision to shore up short-term interest rates to defend the rupee has hit banks and other financial shares.
The RBI is expected to keep policy rates and the cash reserve ratio unchanged, with investors focused on its statement for cues about future action.
Bond yields and rupee movements will also be tracked as investors fear the RBI’s measures to defend to currency will lead to higher borrowing costs and hurt economic growth.
Global share movements will also be important as the Federal Reserve is due to end its two-day meeting on July 31.
Blue chips such as IDFC Ltd , ICICI Bank and Dr.Reddy’s Laboratories Ltd will also report quarterly results in the week ahead.
KEY EVENTS/FACTORS TO WATCH
Earnings: UltraTech Cement Ltd , Reliance Capital Ltd , IDFC
India’s Foreign Investment Promotion Board to consider Jet Airways Ltd -Etihad deal
Tuesday: Reserve Bank of India’s policy review
Earnings: NTPC Ltd , Reliance Infrastructure Ltd , Dr.Reddy’s Laboratories
Earnings: United Spirits Ltd , ICICI Bank, Bharti Airtel Ltd
Earnings: Power Grid Corp of India Ltd , Reliance Communications, Idea Cellular Ltd , Bank of Baroda
Manufacturing PMI for July
Friday: India’s foreign reserves data