MUMBAI: Indian markets are expected to have a positive start on Monday with bank and non-bank stocks at the center of concerns.
The SGX Nifty was 0.55% higher in early trades today, indicating a higher start for Indian benchmarks. On Friday, the Sensex had closed 0.7% higher at 43,882 points while Nifty had risen 0.7% to close at 12,859 points.
The Reserve Bank of India (RBI) recommended keeping the entry of businesses into the banking space, while allowing the conversion of large non-bank and financial service companies (NBFCs) into banks and an increase in the participation of promoters at 26% against 15%.
Analysts expect large non-bank lenders to make the most of the RBI panel’s proposal to allow large corporations and shadow lenders to access banking services.
“If they were allowed to do so, they would give strong competition to incumbent operators and could offer innovative solutions without legacy baggage. We can see greater damage on the CASA / retail liability front, especially in inefficient banks, as these entities have a strong ecosystem and enjoy high levels of trust between people, ”brokerage firm Motilal Oswal said. in a recent report.
Markets will watch the flow of information on vaccine trials in the face of increasing coronavirus cases around the world.
“We expect volatility to remain high next week, thanks to the expected F&O contract expiry in November. In the absence of a major event, updates related to COVID and global indices will remain the focus, ”said Ajit Mishra, vice president – Research, Religare Broking Ltd
Reliance Industries Ltd will also be at the center of concerns after India’s Competition Commission on Friday approved the sale of assets of Future Retail Ltd to the oil-telecom conglomerate, in a setback for Amazon.com Inc., which had approached the anti-trust watchdog to stop the ₹24,700 Crore deal.
Hatsun Agro will see the traction on the news that the Telengana government has agreed to provide various grants in an amount not to exceed ₹25 crore to the company for the establishment of an ice cream factory in Govindapur in the Sangareddy district.
Bharat Dynamics actions will be in the spotlight as the DRDO flagged the first Varunastra, the heavy torpedo, for delivery to the Indian Navy.
Asian stocks open slightly higher. Futures on the S&P 500 gained 0.1%, while South Korea’s Kospi index rose 0.1%. The Australian S & P / ASX 200 index gained 0.5%.
U.S. markets closed lower on Friday as investors grapple with fiscal stimulus developments, concerns over a long vaccine rollout and a growing number of state-level closures to fight the pandemic spiral.
Investors will focus on the minutes of the latest Federal Open Market Committee meeting, US unemployment claims, GDP and personal spending data – expected Wednesday.