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Upbeat global cues to propel Nifty to open in green

Positive global and Asian markets to propel the Indian equity market to open in green. Market indicator SGX Nifty too is up 70 points at around 7795 in morning trade.

The US market yesterday rallied on hopes of a Fed rate hike in December. The Fed’s October minutes show that many members of the committee believe a rate hike next month would be appropriate.

Asian markets too have taken the strong overnight cue and are trading well in the green this morning. The Nikkei is at 3-month high ahead of the bank of Japan’s decision on interest rates following a two-day meeting. Additionally japans’ October trade hit a surplus of 111.5 billion yen beating estimates of a shortfall. Exports fell 2.1 percent on-year, dropping for the first time in 14 months but a 13.4 percent decline in imports fell below estimates.

However, equities in Europe closed mixed as further security scares after the Paris attacks last Friday weighed on investor confidence. Amsterdam-listed steelmaker Arcelormittal saw shares jump 4.8 percent after it said it would cut up to 450 jobs and reduce iron exports from Liberia due to low ore prices.

The benchmark indices in India had fallen more than one percent yesterday. The 50-share NSE Nifty breached 7800-mark, down 105.75 points or 1.35 percent to close at 7731.80.

From other asset classes, the dollar hit a seven-month peak against a currency basket after minutes of the last Fed policy meeting suggested that a December rate increase was on the cards. Gold prices too traded with marginal gains above USD 1070 an ounce.
Crude prices were steady in trade. Overnight the Nymex crude slipped below USD 40 per barrel.

On the home data front the fall in exports is a major concern says commerce minister Nirmala Sitharaman but asserts that it’s not the volume but the value of exports that has fallen. She hopes that a 3 percent interest subvention for SMEs will spur demand.

On the news front, the stake sales in general and life insurance businesses will strengthen the balance sheet says ICICI Bank CEO and MD Chanda Kochhar; adding that the bank is in talks with potential investors for a stake sale in the home finance business.

The government is ready to shell out more on the salary and pension front. A committee headed by the cabinet secretary will be put in place to oversee the wage hike after the 7th Pay Commission submits its report today.

Some of the stocks that could be in focus today are Coal India, Jagran Prakashan and DB Corp, airline stocks.

Unions of Coal India are opposed to 10 percent stake sale.

Commerce minister yesterday said FDI in print media is not yet under discussion.

Meanwhile, aviation ministry extended the deadline for stakeholder response on draft policy to November 30.


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