The News International Team
The Indian equity market is likely to open on a flat note. The SGX Nifty, an indicator of the market opening, was trading at 8130, down 5 points, at 7:45.
In the US, stocks erased record-setting gains on turning lower in a late-session shift as cheer over the European Central Bank’s unexpected rate cut faded, a day ahead of the monthly payrolls report. Non-farm payrolls are estimated to show that economy created 225,000 jobs in August.
And in Europe, shares closed higher with over 1 percent gains after the European Central Bank surprised markets by cutting interest rates to new record lows and announcing a bond-buying program .
In the currency space, the euro skid below 1.30 to the dollar suffering its biggest one-day fall in nearly three years after the ECB delivered a fresh round of stimulus and promised even more if needed.
In commodities, crude prices slipped following a strong dollar, hitting commodities priced in the US currency.
From precious metals space, gold slipped as dollar rallied on ECB rate cuts.
Back home, after five straight days of gains, bulls finally took a day off, pulling the Nifty below the 8100 mark. With profit booking having set in, volatility at higher levels was not ruled out. (More details )
At a time when banks are stressed for capital, RBI relaxed the Basel 3 guidelines making it easier for banks to raise bonds. Bankers say the revised rules will not only reduce the cost of capital for banks, but also reduce the risk for investors.
In addition, the insurance sector is under the service tax department’s scanner for violation of some tax norms. The taxman is planning to evaluate whether these violations lead to a tax evasion case.
On the macro front, India is gearing up to woo China after Japan. A slew of MoUs are expected to be signed when the Chinese president Xi Jin-Ping comes calling later this month.
In other news, Vijay Mallya’s troubles have mounted further with a whopping 52 percent erosion in the net worth of United Spirits . A clean-up operation mounted by controlling shareholder Diageo at United Spirits has the board alleging improper diversion of funds and fraudulent agreements entered into by the company with the management being in the know.