9:55 am IMF on China:
Financial markets need more clarity on how Chinese authorities are managing their currency, particularly the relationship of the yuan to the US dollar, IMF Managing Director Christine Lagarde said.
Sharp swings in the yuan have contributed, along with a dramatic fall in the price of oil, to global market volatility since the beginning of 2016.
Bank of Japan Governor Haruhiko Kuroda, speaking on the same panel at the World Economic Forum in Davos, said he believed China should use capital controls to stabilise its currency while keeping domestic monetary policy loose.
9:45 am Moody’s on India: India’s GDP could grow 6.5-7.5 percent over the next 12-18 months, according to over three quarters of the market participants polled by rating agency Moody’s last week. Market participants are increasingly concerned about the potential spillover of external risks, such as interest rate tightening in the US and China’s ongoing slowdown, on India’s growth story, the Moody’s poll. “35 percent saw external shocks as the greatest challenge facing India’s economy, up from just 10 percent in our previous poll in May 2015. However, this is more likely a reflection of the broad-based spike in global risk aversion rather than India’s relative vulnerabilities,” said the Moody’s release.
9:30 am FII view: Market sentiment is a little better now, but there is still a sense of caution in global markets, says David Mann of Standard Chartered. The European Central Bank’s president, Mario Draghi said that the bank might step up its stimulus as early as March on the back of low inflation and volatility in financial markets. Speaking to CNBC-TV18, Mann says that monetary easing by major central banks will help lift global sentiments. Europe, he says, is more likely to see further easing than the Bank of Japan. The key is the tone of the Federal Reserve, Mann says adding that it will stimulate markets if it is dovish.
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The market has opened higher on Monday. The Sensex is up 157.91 points or 0.6 percent at 24593.57 and the Nifty is up 46.10 points or 0.6 percent at 7468.55. About 870 shares have advanced, 130 shares declined, and 35 shares are unchanged.
SBI, M&M, ICICI Bank, ONGC and Tata Steel are top gainers while Bharti Airtel, Wipro, ITC and HUL are losers in the Sensex.
The Indian rupee opened higher by 9 paise at 67.54 per dollar against 67.63 Friday.
Agam Gupta of Standard Chartered said, “We should see a range of 67.45-67.80/dollar today. I expect stronger demand for USD to emerge below 67.50 levels. Exporters will look for the upticks to hedge their dollar receivables.”
“Market participants will continue to keep an eye on equity and oil moves through the day,” he added. Dollar is firm, boosted by increased expectations of monetary easing by Central Banks in Europe and Japan, and by strong US housing data.
Asian stocks gained in early trade, relieved after seeing Wall Street rally overnight on the back of a sharp rise in crude oil prices.
Global equities were also boosted last week as the European Central Bank signaled additional monetary easing steps to come, and focus fell on the Federal Reserve and Bank of Japan meetings this week. From the Fed, investors will look for any hints of when a second interest rate hike would come, while speculation mounted last week toward the BOJ implementing additional easing measures.