The Reserve Bank of India's interest rate decision and its statement will make a significant impact on the Indian stock market next week. And then, there will be a slew of earnings reports from India Inc., which will provide some direction to the market.
Investors will also eye sales and shipments data from leading automobile and cement manufacturers for cues.
The Reserve Bank of India will make its monetary policy statement on Tuesday, 30 October 2012. The central bank, which left rates unchanged the last time it reviewed the policy, may well refrain from announcing a significant reduction in rates. It is widely expected that the apex bank will resort to a 25-basis points cut in Repo rate this time. Some expect the central bank to cut CRR by 25 basis points.
The data on manufacturing activity will be eyed. Markit Economics will unveil HSBC India Manufacturing purchasing managers' index for October 2012 on Thursday next week.
BHEL, Grasim Industries, Maruti Suzuki, Dr Reddy's Laboratories, Wipro and Power Grid Corporation are among the top notch companies that will come out with their earnings reports during the course of next week.
On Wall Street, stocks saw some early strength thanks to better than expected GDP growth in the third quarter, but pared most of their gains and ended flat on Friday. While the data could help lift sentiment to an extent next week, investors are unlikely to go on any big buying spree as weak corporate results and dim outlook for the eurozone economy will continue to weigh.
Apart from RBI's monetary policy and quarterly results from India Inc., developments on the political front following the cabinet reshuffle effected on Saturday (27 October) and economic data from the U.S., Europe and China will provide cues for the market's direction.