Focus on RBI and results!

The ability to focus attention on important things is a defining characteristic of intelligence. - Robert J. Shiller

Given the global cues, we may be in for a positive start. But the market is likely to pay more attention to what the RBI has to say. For containing the inflation persistence and anchoring inflation expectations, anti-inflationary monetary policy actions become a necessity," the RBI mentioned. We expect the central bank to continue its gradual normalization of monetary policy by hiking both the repo and reverse repo rates by 25bps today.



On Monday, the Nifty failed to cross the psychological barrier of 5500. While selling pressure was witnessed across the board, especially in auto stocks, the volumes were lower overall.

The focus today will later shift to the heavy flow of results ranging from Reliance to HUL. The global markets have shown some green. Asian stocks are higher for the third straight day following better- than-estimated new home sales in the US.

The Dow Jones added 100 points while the Nasdaq gained 27 points, taking the indices into positive zone for the year.

Moody’s raised India’s local-currency debt rating by a level to Ba1, the highest non-investment category.

Results today: Reliance Ind, HUL, MRPL, Larsen & Toubro, Cairn India, Jubilant Organ, Glenmark Pharma, JSW Steel, Ashok Leyland, Godrej Inds, Cadila Health, Titan Inds, IRB Infra.Devl, Asian Paints, GTL, Oil India,

The euro weakened against the dollar, while the dollar gained against the Japanese yen. U.S. light crude oil for September delivery fell 6 cents to $78.92 a barrel on the New York Mercantile Exchange.

Among the other news, Fortis Healthcare reaps Rs3.8bn as it pulls out of Parkway bid. OIL & Natural Gas Corporation plans to spend US$5bn to develop gas fields to boost output by almost 60% in six years. NMDC is contemplating buying coking coal mines in Russia from Kolmar for US$400mn. (BS)

Dabur India Ltd has acquired a Hobi Kozmetik Group, a Turkish personal care products company, for Rs3.2bn. Tech Mahindra is likely to merge with Mahindra Satyam before the end of 2011 calendar year, says a report.

Lenders to Vishal Retail (VRL) are likely to support a debt restructuring proposal from Kishore Biyani's Future Group, disregarding a rival offer from private equity firm TPG. (ET)

The group of ministers (GoM) on ethanol maintained status quo on its earlier decision by upholding a price of Rs27 a litre for a mandatory 5% blending with petrol in spite of the stiff opposition from the Ministry of Chemicals and Fertilizers. (BS)

The Chief Statistician of India has said that a new series of consumer price index (CPI) will be rolled out in January next year. (BL)

According to a recent verdict by the Authority for Advance Ruling, Minimum alternate tax is not payable by foreign companies not having a permanent establishment in India. (ET)