India`s Nifty 50, Sensex seen flat ahead of China rate decision, Powell testimony
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India's Nifty 50 and Sensex stock indexes are set to open little changed on Monday, amid caution across global equities ahead of China's interest rate decision and U.S. Federal Reserve Chair Jerome Powell's testimony on rate trajectory.
India's NSE stock futures listed on the Singapore Exchange were up 0.06% at 18,908.50, as of 8:09 a.m. IST.
Wall Street equities declined on Friday after hitting 14-month highs earlier in the week, amid hawkish comments by Fed officials.
Fed Chair Powell is scheduled to deliver congressional testimonies on monetary policy on Wednesday and Thursday. Traders are pricing in a 72% chance of a 25 basis points rate hike by Fed at its July meeting, after a pause in June.
Asian markets declined ahead of China's policy decision on Tuesday, with the Chinese central bank expected to cut its key interest rates.
The world's second-largest economy cut medium-term policy loans last week to spur growth, after weak macro data signalled concerns over economic revival. [MKTS/GLOB]
The Nifty and Sensex logged new closing highs on Friday. Broader peers midcaps hit new record high while the smallcaps logged fresh 52-week highs.
Analysts expect the ongoing rally to sustain, after a period of consolidation. "The indications are in favour of the prevailing tone to continue," said Ajit Mishra, senior vice president, technical research at Religare Broking.
"We are eyeing the 19,100 mark in Nifty and expect 18,400-18,550 zone to offer a cushion in case of profit taking."
Both foreign institutional and domestic investors bought Indian equities on Friday, as markets settled at new highs.
STOCKS TO WATCH
** Adani Enterprises: Co's unit signs a share purchase agreement to buy Stark Enterprises, an online train booking and information platform.
** Kalyan Jewellers India: Warburg Pincus-backed Highdell Investment sells 64.1 million shares, aggregating to 6.2% stake in the company at 113.1 rupees per share.
Nomura India Investment Mother Fund, BNP Paribas Arbitrage, Franklin Templeton Mutual Fund via Franklin India Flexi Cap Fund, together buy 33.9 million shares (3.3% stake) at same price.
** ABB India: Kanpur Metro deploys company's electrification solutions for power control and distribution.
** Manappuram Finance: Reserve of India imposes monetary penalty of 2 million Rupees on company.
