Volatile markets before RBI policy; Indigo, RIL, actions of the Tata group in focus

MUMBAI: Indian stock markets are likely to remain volatile on Tuesday, with SGX Nifty trends suggesting a positive opening for domestic benchmarks. On Monday, the Sensex BSE slipped 949.32 or 1.65% to 56,747.14 and the Nifty lost 284.45 points or 1.65% to 16,912.25.

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

Asian stocks rose on Tuesday after the rebound in US stocks and China pledged to take action to support slowing economic growth. Treasuries stabilized after the fall.

MSCI Inc.’s Asia-Pacific stock gauge rose for the first day of three as Japan climbed. Hong Kong outperformed, Alibaba Group Holding Ltd. leading a rebound in Chinese tech companies after the company announced a management reshuffle. US futures rose slightly. The S&P 500 erased last week’s losses, while the high-tech Nasdaq 100 also gained, helped by lessening concerns about the severity of the omicron virus variant.

Returning home, InterGlobe Aviation Ltd, which operates India’s largest national airline, IndiGo, on Monday announced it will hold an Extraordinary General Meeting (EGM) on December 30, asking shareholders for permission to amend its bylaws ( AoA) and remove the restrictions on the promoter. transfer of shares.

Reliance Industries Ltd (RIL) has taken out a green loan equivalent of $ 736 million from five banks to finance its acquisition of Norwegian solar panel maker REC Solar Holdings, marking the first such financing for the retail-to-telecom conglomerate .

Tata Sons is considering appointing aviation industry veteran Fred Reid as CEO of Air India and Nipun Aggarwal as CFO, according to media reports.

Treasury yields rose sharply on Monday, erasing most of Friday’s steep declines, amid corporate bond offers. The curve steepened, reversing a trend in which the Federal Reserve’s rate hike expectations had supported short-term yields. The dollar was stable and oil extended its gains.

Chinese policymakers decided to expand their support for the economy on Monday as a slowdown in the housing market threatens to hamper growth. They signaled an easing of real estate restrictions and pledged to stabilize the economy in 2022. The People’s Bank of China said it would lower the reserve requirement ratio of most banks, while Premier Li Keqiang said said there was room for a variety of monetary policy tools.

Easing monetary conditions to support the growth of the world’s second-largest economy should provide some support to markets plagued by bouts of volatility. The faster pace of the Fed’s reduction in bond purchases, which will pave the way for a rate hike next year to tackle high inflation, has tested investor appetites for the risk.

Nonetheless, investors expect further turmoil for the stock markets. New restrictions are appearing across the world as authorities attempt to stem the spread of omicron.

Geopolitical tensions are also resurfacing. US and European allies are considering banking sanctions if Russia invades Ukraine. U.S. government officials will boycott the Beijing Winter Olympics in February over concerns over human rights violations.

(Bloomberg contributed to the story)

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