All eyes on RBI: 10 things to know before the opening bell

Global cues:

Asian shares were tentative on Wednesday as investors waited with bated breath to hear when the U.S. Federal Reserve will begin unwinding its massive stimulus, a major driver for global risk assets in recent years.MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.1 percent. On Tuesday, it trimmed early gains to end flat.

The dollar was on the back foot against the euro and the yen on Wednesday as traders cautiously looked to what the Federal Reserve will do with its stimulus – a major force that has simultaneously underpinned riskier global assets and restrained the dollar in recent years.

US stocks closed slightly lower on Tuesday, with investors reluctant to make big bets before the results of a Federal Reserve meeting that could give some clarity as to when the central bank will begin trimming its stimulus.The Dow Jones industrial average.DJIslipped 9.31 points, or 0.06 percent, to close at 15,875.26. The Standard & Poor’s 500 Index.SPXdeclined 5.54 points, or 0.31 percent, to finish at 1,781.00. The Nasdaq Composite Index.IXICfell 5.84 points, or 0.14 percent, to end at 4,023.68.

Business/Stock news:

Banking stocks will be in focus. The Reserve Bank of India suggested an array of measures to address the growing pile of bad loans in the banking system. The measures include stricter action against wilful defaulters and more freedom for asset reconstruction companies in handling non-performing assets of banks.

Trent Hypermarket Ltd, a unit ofTrent Ltdis in discussions with British multinational retailerTesco Plc.for an investment in the former. The total amount of investment proposed by Tesco is $110 million.

In what seems like yet another hurdle in the Jet Airways -Etihad deal,the Competition Commission of India has asked market regulator,Securities and Exchange Board of India (Sebi) to analyse whether the open offer issue has been triggered in the deal.

Economy news:

The Reserve Bank of India (RBI) will come out with its mid-quarter policy review today. With the recent surge in inflation, a rate hike looks imminent. A poll conducted by CNBC-TV18 shows that 90 percent of the respondents expect that the RBI will hike repo rate by 25 basis points

Commerce Minister Anand Sharma has welcome Tesco’s decision to invest in India.

PSU banks in focus -Banks to go on strike today -Trade unions have decided to go on day-long strike to press for wage revision and other demand