By RTT News,
August 04, 2014, 10:57:00 PM EDT
(RTTNews.com) - Indian shares are likely to open little changed on Tuesday as indicated by futures trade on the Singapore Exchange. All eyes will be on the Reserve Bank of India's monetary-policy meeting as the central bank reviews its credit policy against the backdrop of an uncertain economic environment globally as the Federal Reserve continues phasing out of its economic stimulus measures. Domestically, concerns remain that disappointing monsoon rains will lead to a surge in food prices.
Meanwhile, the Commerce and Industry Ministry plans to unveil the new five-year foreign trade policy (20014-19) by the end of this month to boost manufacturing and exports, among other things, media reports quoted a commerce ministry official as saying.
The benchmark indexes Sensex and Nifty rose about a percent each on Monday, as investors assessed the implications of mixed U.S. jobs data on U.S. monetary policy and news of a bailout for a crisis-hit Portuguese bank eased worries about strains on the European banking system.
In corporate news, diversified conglomerate ITC has raised the prices of select cigarette brands by up to Rs 10/pack in the wake of hike in excise duty on cigarettes in the Budget.
Public sector lender Indian Bank has revised interest rates on its foreign currency non-resident (Banking) deposits with immediate effect.
IndusInd Bank and Jet Airways have joined hands to launch a co-branded credit card.
The government suspended Syndicate Bank Chairman and Managing Director S K Jain, two days after CBI arrested him on bribery charges.
The Supreme Court has asked mining company Sesa Sterlite to pay entry tax to the tune of Rs 10 crore within two weeks and remaining Rs 19.76 crore by the end of four weeks, failing which the Orissa government can take all steps including coercive action to recover the amount.
<b>Asian Markets </b>
Asian stocks are trading mostly lower despite positive cues from Wall Street overnight. Australia'sS&P/ASX 200 is moving down 0.3 percent as investors await RBA rate decision. Japan's Nikkei index is declining 0.2 percent to hit a one-week low, extending losses for the fourth straight day. China' Shanghai Composite is losing 0.4 percent after climbing 1.7 percent to a seven-month high yesterday. South Korea's Kospi average is down 0.4 percent, while shares in Hong Kong and New Zealand are marginally higher.
Crude prices are marginally higher on renewed geopolitical concerns and gold held steady, while the euro is trading flat ahead of a European Central Bank meeting on Thursday. The central bank is unlikely to announce fresh stimulus measures after the bold package announced in June.
<b>U.S. And European Markets </b>
U.S. stocks rebounded from two days of losses on Monday, as Berkshire Hathaway's results and a bank bailout in Europe gave investors a reason to buy stocks. Nonetheless, trading activity remained somewhat subdued amid the absence of any major U.S. economic data. The Dow rose half a percent, while the tech-heavy Nasdaq and the S&P 500 gained about 0.7 percent each.
European stocks ended mixed on Monday after Portugal's central bank announced a plan to rescue the troubled lender Banco Espirito Santo. Markets initially cheered the move, but enthusiasm waned as the session progressed. While France's CAC 40 rose 0.3 percent, the German DAX lost 0.6 percent and the U.K.'s FTSE 100 ended little changed with a negative bias.
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