The key domestic benchmarks are likely to open on a positive note today
tracking a bullish trend across Asia as risk taking sentiment revives amid hopes
that the US Federal Reserve’s pledge to stay patient on monetary tightening may
bolster capital flows into emerging markets. Fed Chair Janet Yellen ruled out an
interest rate hike at least until April even as the US economy strengthens.
China’s stocks rose on hopes of further stimulus while transport shares rallied
on lower oil prices. Hang Seng rose sharply while Japan’s Nikkei 225 soared as
the yen weakened ahead of a Bank of Japan monetary policy announcement. The apex
bank had boosted stimulus nearly two months ago, stunning markets by raising its
annual target for expanding its monetary base by 80 trillion yen. A weaker yen
boosted the appeal of exporter stocks. Back home, a rebound in the rupee which
earlier this week fell to a 13-month low against the US dollar amid global
turmoil, will support sentiment. The cabinets go -ahead to the long pending GST
signals the seriousness of the Modi government to undertake structural reforms
to boost economic growth, bolstering sentiment.
