Market witnessed volatility before RBI policy; Indigo, RIL in focus

Indian stock markets are likely to remain volatile on Tuesday, with SGX Nifty trends indicating a positive start for domestic benchmark indices. On Monday, the BSE Sensex was down 949.32 or 1.65% at 56,747.14 and the Nifty was down 284.45 points or 1.65% at 16,912.25.

Investors will remain cautious ahead of the Reserve Bank of India’s monetary policy statement coming on Wednesday.

Asian stocks rose on Tuesday after US stocks rose and China pledged measures to support slowing economic growth. The Treasury remained stagnant after the fall.

MSCI Inc. The gauge of Asia Pacific shares of the US rose in three on the first day as Japan climbed. Hong Kong fared better with Alibaba Group Holding Ltd., prompting a rebound in Chinese tech firms after the company announced a management shakeup. US futures prices rose. The S&P 500 erased last week’s losses, while the technology-heavy Nasdaq 100 also rallied, allaying concerns about the severity of the Omicron virus variant.

Back home, InterGlobe Aviation Ltd, which operates India’s largest domestic airline IndiGo, on Monday said it will hold an Extraordinary General Meeting (EGM) on December 30 to amend the Association of Shareholders’ Association (AOA) and to remove the ban on the promoter will be sought. share transfer.

Reliance Industries Ltd (RIL) has taken green loans worth $736 million from five banks to acquire Norwegian solar panel maker REC Solar Holdings, the first such financing for a retail-to-telecom conglomerate.

According to media reports, Tata Sons is considering appointing aviation industry stalwart Fred Reid as the Chief Executive Officer of Air India and Nipun Agarwal as the Chief Financial Officer.

Treasury yields rose on Monday, erasing most of Friday’s fall amid corporate bond offerings. The curve stabilized, reversing the trend in which Federal Reserve rate hike expectations had raised short-debt yields. The dollar was stable and oil rose.

China’s policymakers on Monday stepped in to expand support for the economy as a slowdown in the asset-market threatens to stifle growth. He signaled an easing of real estate restrictions and pledged to stabilize the economy in 2022. The People’s Bank of China said it would reduce the reserve requirement ratios of most banks, while Premier Li Keqiang said there is room for a variety of monetary policy instruments.

Easing monetary conditions to shore up growth in the world’s second-largest economy should provide some respite for markets reeling from volatility. The Fed’s rapid pace of its bond-buying, which will pave the way for raising rates next year to combat heightened inflation, has tested investors’ appetite for risk.

Still, investors see further volatility ahead for the equity markets. New restrictions are appearing around the world as officials try to stop the spread of Omicron.
 

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