Excerpts from Power Breakfast on CNBC-TV18 Watch the full show »
The Nifty is likely to open in the green with indicator SGX Nifty at 8403.50, up 13 points at 7.57 AM. Equity benchmarks saw consolidation on Monday after hitting record highs in early trade. The 50-share NSE Nifty ended at record closing high of 8344.25, up 7.25 points and the 30-share BSE Sensex rose 6.10 points to 27874.73 after hitting intraday high of 8383.05 and 28027.96, respectively. The broader markets too ended with marginal gains.
The Reserve Bank tightened the bad loan norms for NBFCs, bringing them on par with banks, any loans unpaid for 3 months will turn into an NPA starting March 2018.
On a negative note, Crisil expects jobs growth in IT sector to fall 50 percent in the next 4 years, says only 55,000 people could be hired in 2018.
US markets closed modestly higher but the S&P, Dow again rise to record closes amid earnings. Stocks closed modestly higher, with healthcare companies leading the charge that again lifted benchmarks to records, as investors tracked corporate results as the earnings season starts to wind down.
European shares too closed higher staging a last minute rally, with Carlsberg gaining after reporting earning. The French CAC outperformed its European peers.
In the currency space, the dollar gains reversing some of its post-payrolls losses as investors were quick to rebuild long positions amid an absence of major drivers.
Asian markets are positive in morning trade. Nikkei rebounded from one-week lows after September’s current account balance rose 61.9 percent from a year earlier, a third straight month of surplus. Japan’s Nikkei rose 0.68 percent or 113.30 points at 16,893.83. South Korea’s Seoul Composite was up 0.19 percent or 3.80 points at 1,962.03.
China’s Shanghai Composite advanced 0.79 percent or 19.62 points at 2,493.29. Hong Kong’s Hang Seng added 0.50 percent or 119.84 points at 23,864.54.
Taiwan’s Taiwan Weighted was flat at 9,042.24. Singapore’s Straits Times was flat at 3,303.08.
In commodities, brent slumps to 81 dollars per barrell as US dollar strength outweighed worries about conflict in Libya and Ukraine.
From precious metals space, gold prices decline as a short-covering rally loses steam.