MUMBAI: Indian stocks are expected to move closer on Tuesday, with SGX Nifty futures indicating a flat to positive open for benchmarks.
On Monday, the BSE Sensex closed at 38,756.63, down 97.92 points or 0.25. The 50-stock Nifty index closed at 11,440.05, down 24.40 points or 0.21%
Asian stocks were adrift on Tuesday as investors focused on upcoming data and central bank meetings, although positive developments around potential covid-19 vaccines and increased trading activity will reduce probably the losses.
Investors will also look to central banks for direction, with the US Federal Reserve starting a two-day policy meeting on Tuesday, the first since unveiling a historic shift to a more tolerant stance on inflation in August. The Bank of Japan and the Bank of England announced their respective policy decisions on Thursday.
Back home, the Reserve Bank of India (RBI) called on banks to complete the automation of bad debt recognition and provisioning processes by June 30, 2021. Non-performing asset identification processes (NPA), revenue recognition, provisioning and associated yield generation at many banks are not yet fully automated, the central bank observed in a notice released on Monday.
State-owned banks are on the verge of ₹20,000 crore via recapitalization bonds this fiscal year, at a time when the coronavirus crisis threatens to increase bad debts in the banking system. Finance Minister Nirmala Sitharaman tabled the first batch of additional grant requests in parliament on Monday, reflecting the additional spending sought by various ministries beyond budget allocations.
Bank ICICI said on Monday it was exempt from the provisions of the Banking Regulation Act relating to its investments in its insurance companies.
Responding to a pandemic fueled demand for small cars and sport utility vehicles, Tata Motors has increased its monthly output to 16,000-18,000 cars for the coming months, according to a Mint report.
The US dollar fell 2.2% against a basket of currencies, hitting a two-week low against the yen, as demand for the safe-haven currency eased amid rising equities.
US crude recently rose 0.35% to $ 37.39 a barrel.
Reuters contributed to the story.