MUMBAI: Indian stocks are expected to be rangebound on Tuesday, with SGX Nifty futures indicating a flat-to-positive opening for benchmark indices.
On Monday, the BSE Sensex ended at 38,756.63, down 97.92 points or 0.25. The 50-share index Nifty ended at 11,440.05, down 24.40 points or 0.21%
Asian stocks were adrift on Tuesday as investors shifted focus to upcoming data and central bank meetings although positive developments around potential covid-19 vaccines and increased deal activity will likely stem losses.
Investors will also look to central banks for direction, with the U.S. Federal Reserve starting a two-day policy meeting on Tuesday, the first since unveiling a landmark shift to a more tolerant stance on inflation in August. The Bank of Japan and the Bank of England announce their respective policy decisions on Thursday.
Back home, the Reserve Bank of India (RBI) has asked banks to complete automation of bad loan recognition and provisioning processes by 30 June 2021. The processes for non-performing asset (NPA) identification, income recognition, provisioning and generation of related returns in many banks are not yet fully automated, the central bank observed in a notification issued on Monday.
State-run banks are poised to get ₹20,000 crore through recapitalization bonds this financial year, at a time the coronavirus crisis threatens to bump up bad loans across the banking system. Finance minister Nirmala Sitharaman on Monday tabled the first batch of supplementary demand for grants in the Parliament, reflecting additional expenses sought by various ministries beyond the budget allocations.
ICICI Bank, on Monday, said it has been exempted from provisions of the Banking Regulation Act relating to its investments in its insurance companies.
Riding a pandemic-fuelled demand for both small cars and sports utility vehicles, Tata Motors has ramped up monthly production to 16,000-18,000 cars for the coming months, according to a Mint report.
The US dollar dropped 2.2% against a basket of currencies, hitting a two-week low versus the yen, as demand for the safe haven currency eased amid the rise in equities.
U.S. crude recently rose 0.35% to $37.39 per barrel.
Reuters contributed to the story.
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