The key domestic benchmarks are likely to open on a positive note
tracking a firm trend in Asian stocks and a record high closing at Wall Street
on Friday as a surprise interest rate cut by China spurred optimism over the
outlook for the world economy. China joined Japan and Europe to unleash further
monetary stimulus as it cut benchmark rates for the first time since July 2012
to bolster growth in the world’s second biggest economy. China’s Shanghai
Composite and Hang Seng surged after the one-year lending rate was cut by 0.4
percentage point to 5.6 per cent, while the one-year deposit rate was reduced by
0.25 percentage point to 2.75 per cent. Japan’s Nikkei 225 was closed today.
Back home, all eyes will be on the Winter Session of Parliament which begins
today where the Modi government is looking to pass key bills to reduce red tape
and bolster FDI investment in sectors such as insurance. Some volatility may be
seen in markets ahead of the expiry of the November F&O contracts on
Thursday.
