Focus on WPI, RBI policy: 10 things to know before the opening bell

Global cues:

The Federal Reserve holds the wild card for the U.S. stock market next week.

Will the U.S. central bank now slow the pace of its stimulative bond buying as the economy’s outlook begins to brighten or will it wait, setting the stage for stock investors’ undreamed of gains to keep going? The MSCI world equity index .MIWD00000PUS was down 0.07 percent at 391.89, taking its losses for the past two weeks to 2.49 percent, the biggest fortnightly loss since June.

[caption id=“attachment_1272629” align=“alignright” width=“380”]  Reuters[/caption]

The US dollar hovered near a five-year high against the yen and rose against the euro on Friday, while global equity indexes slipped on growing concerns the US Federal Reserve could surprise investors by scaling back its stimulus as early as next week. The prospect of Fed tapering boosted the dollar, with the euro falling 0.1 percent to $1.3738.

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The RBI’s mid quarter review of monetary policy and the US Federal Reserve’s meeting that could decide on tapering its economic stimulus would be the key driving factors for stock markets this week, experts said.

Business/Stock news:

Asserting its primary claim, the Income Tax Department has maintained that dues to it will have to be settled first by Vijay Mallya-led Kingfisher Airlines , in the wake of a lender consortium of banks laying claim to “Kingfisher House” in Mumbai to recover part of their loans.

SKS Microfinance witnessed financial frauds to the tune of Rs 2.1 crore during FY 2013 and is taking a slew of measures to prevent its employees from indulging in such offences.

SpiceJet Ltd shares will be in limelight as the firm is set to sign an inter-line agreement with Singapore-based low-fare airline Tiger Airways Singapore Pte Ltd to connect to Singapore and other international destinations from Hyderabad airport.

Economy news:

Overseas investors have poured in over Rs 8,500 crore (about USD 1.4 billion) in the equity market this month amid expectations the BJP’s victories in state assembly polls have brightened the party’s prospects in next year’s Lok Sabha elections.

Data for inflation based on wholesale price index, scheduled for release on Monday, is expected to have a major bearing on RBI policy meet on December 18. Price rise measured by the consumer price index rose to a nine-month high of 11.24 percent in November, raising fears of an imminent rate hike.