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Global cues positive; Nifty likely to follow trend

The News International Team

The Indian equity market is likely to open on a steady note. The SGX Nifty, an indicator of the market opening, was trading at 8398.50, up 38 points.

In the US, stocks surged on Friday, lifting the Dow industrials and S&P 500 to record closes, after the Bank of Japan unexpectedly expanded stimulus, increasing hopes for the global economy.

In Europe, shares ended the day sharply higher, as Bank of Japan expanded its monetary base target. Moreover, Bank of England outlined tougher leverage rules for banks but were less strict than anticipated- boosted UK banks in particular.

Meanwhile in Asia, mood is relatively quiet with Japan closed for a holiday. Kospi is lower after a private gauge of manufacturing activity fell to a four-month low in October. China’s official PMI fell to a five-month low for October as it came in at 50.8 from September’s 51.1.

From the currency space, the yen fell to a fresh seven-year low against the dollar, extending a massive selloff sparked by the Bank of Japan’s surprise decision to boost its already huge bond-buying stimulus.

In commodities, oil prices are soft in trade as another round of monetary stimulus from Japan pumped up the US dollar and pounded a crude market already suffering from robust supply.

From the precious metals space, gold and silver sank to their lowest since 2010 as the USD surged against the yen and other major currencies.

Back home, the bull run on Dalal Street turned into a sprint. the Nifty shattered all records to zoom past 8,300, as Sensex rallied over 500 points to near 28,000. ( Read more )

Onto the macros, the core sector comprising eight industries like electricity, steel, cement, coal slowed to 1.9 percent compared to 5.8 percent growth in August.

Meanwhile, eight PSU banks will have a chairman and managing director by the end of November, as banking secretary confirmed the RBI governor will lead the selection process which will begin on the November 13.

In other news, crude oil prices have been falling quite steadily and India’s oil marketing companies have decided to spread the cheer. Petrol and diesel price on Friday were cut by over Rs 2 a litre. In addition, ATF (aviation turbine fuel) prices were also cut by 7.3 percent. 

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