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Global cues positive; Nifty likely to remain subdued

The News International Team

The Indian equity market is likely to open trade on a flat note with the SGX Nifty, an indicator of the market opening, trading at 8567.50, down 1.50 points.

A big sell-off on Dalal Street was prevented yesterday by the Reserve Bank of India’s dovish tone. However, Sensex shed over 100 points for the second straight day. The 30-share BSE Sensex declined 115.61 points to close at 28444.01 and the 50-share NSE Nifty slipped below the 8550, down 31.20 points to 8524.70. ( Read more )

Ten-year bond surged, as yields hit their lowest level in over 16 months. The rupee also gained to end below 62-mark against the dollar.

The Reserve Bank of India left key policy rates unchanged but held out hope for the near-term. In an exclusive conversation with CNBC-TV18, governor Rajan said that they are seeing positive surprises on inflation and they hope it continues. He adds that the scope for significant rate cuts depends on disinflationary process.

Meanwhile, big bull Rakesh Jhunjhunwala says Nifty can hit levels of 1,25,000 by 2030.

In other news, insurance FDI hike is a step closer from being a reality. Congress came on board as the select panel got into a huddle despite the Trinamool members walking out of the meeting in protest.

Supreme Court allowed Sahara to sell 4 domestic properties to raise Rs 2,700 crore but SEBI threw a spanner in the works over fund-raising from overseas hotels.

On the global front, US stocks gained, with the Dow striking another peak, as investors cheered better-than-expected November auto sales. The CBOE volatility index, one measure of investor uncertainty, fell 10.1 percent to 12.85 percent.

And in Europe, stocks closed mixed even on overnight gains as oil prices boosted energy stocks and an upturn on wall street helped investor sentiment.

Meanwhile, in Asian markets, People’s Bank of China may unveil a cut in reserve requirements for banks.

In the currency space, the USD hovered at a seven-year high against the Japanese yen, following a broad rally overnight, in part to a big rise in US yields.

In commodities, crude prices stayed steady after industry data showed a larger than expected drop in crude oil inventories in the United States.

From precious metals space, gold prices dipped below USD 1200 an ounce as dollar strengthened.

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