Markets focus on RBI policy review; rate cut to boost

Investors to focus on the Reserve Bank of India's monetary policy review due on Tuesday.

Markets pricing in a rate cut although only 4 out of 45 economists in a Reuters poll say the RBI will cut rates.

Focus continues on the ongoing winter session of parliament for cues on further reforms.

10-yr bond yield can drop to sub-8 pct levels if RBI cuts rates.

Yield broadly seen in 7.95 to 8.25 pct range next week.

Rupee seen moving in a 61.50 to 62.50 to a dlr band.

Nifty seen in a 8,350-8,750 range.

Oil and gas stocks will be in focus as crude prices are near multi-year lows.

KEY FACTORS/EVENTS TO WATCH

All week: Parliament winter session to run until Dec. 23

India's current account balance data (no fixed time)

India trade balance from RBI (no fixed time)

Mon: HSBC Markit manufacturing PMI to be released at 10:30 a.m.

Tues: RBI's monetary policy review due to be released at 11 a.m.

Wed: HSBC services PMI to be released at 10:30 a.m.

Fri: India foreign exchange reserves data