IGI Logo

Indian blue-chip indexes, trading at record highs, are set to open flat on Friday, ahead of the Reserve Bank of India's (RBI) monetary policy decision, where the central bank is expected to maintain its key interest rate for a seventh straight meeting.

India's GIFT Nifty was trading at 22,534 as of 8:03 a.m. IST, indicating that the NSE Nifty 50 will open near Thursday's close of 22,514.65.

India's benchmark indexes Nifty and S&P BSE Sensex settled at all-time closing highs in the previous session, lifted by high-weightage financials led by top private lender HDFC Bank on sequential rise in deposits, ahead of the central bank's policy decision.

The RBI is expected to hold rates steady at its monetary policy decision later in the day, according to a Reuters poll of economists.

"We expect RBI to keep policy repo rate unchanged, retain the monetary policy stance of withdrawal of accommodation, and sound optimistic on growth," said analysts at Goldman Sachs.

While the central bank could take comfort from declining core inflation, it will tread with caution given the upside risks to food inflation from weather shocks and repricing of the easing path of the U.S. interest rates, they added.

Wall Street equities closed lower overnight, after comments from three Federal Reserve officials added to worries that the U.S. central bank could delay the onset of rate cut. [.N]

Markets expect a 25 basis point Fed rate cut in June, but recent data, including manufacturing and labour market readings, had spurred concerns over U.S. rate outlook.

Asian markets opened lower, with the MSCI Asia ex-Japan index dropping 0.75%. [MKTS/GLOB]

STOCKS TO WATCH:

** Bajaj Finance: Non-bank lender reported 34% year-on-year growth in assets under management (AUM) and 35% growth in deposits book, in March quarter.

** Nestle India: National Consumer Dispute Redressal Commission dismissed a 2015 complaint by department of consumer affairs seeking compensation of 2.85 billion rupees, from the company.

** Bandhan Bank: Company said total deposits in March quarter grew 25.1% year-on-year in March quarter, while loans and advances were up 17.8%.

** Hero MotoCorp: Company got tax order for demand at 3.09 billion rupees.

($1 = 83.4460 Indian rupees)