InvestorQ : What is your outlook for the stock markets and the indices for Friday, 04 December 2020? Do you see any impact of the monetary policy on markets?
Niti Shenoi made post

What is your outlook for the stock markets and the indices for Friday, 04 December 2020? Do you see any impact of the monetary policy on markets?

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diksha shah answered.
5 months ago
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The monetary policy to be announced on Friday could have little by way of surprises. The repo rates are expected to be maintained at 4%. However, there is a possibility that the RBI could signal that accommodative stance would not continued and that could be a worry.

On Thursday, the Nifty just edged higher by 20 points to 13,134 on despite the volatility of options settlement. While the again enjoyed sharply positive A/D ratio at 35:15 in favour of advances, one worry for sentiments could be the impact of US supply chains.

In big news on Thursday, HDFC Bank took a hit after the RBI restrictions on its digital business and that kept private banks subdued. However, auto stocks led by Maruti Suzuki showed traction after the monthly numbers with were positive.

Global flows continued to be supportive. FPIs were net buyers to the tune of just Rs.3637 crore on 03 December while DFIs sold Rs.1440 crore. Markets could be wary on Friday in the first half as there is a chance that MPC may do a rethink on accommodative stance.

In terms of global markets, the NASDAQ and Dow were up 50 bps but hardly showed direction. SGX Nifty and the rest of Asia could see some pressure in early trades after the US admitted that some genuine logistic problems in the distribution of the COVID vaccine could pose a major challenge to addressing the pandemic.
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