The key domestic benchmarks are tipped to open
higher today tracking a mostly positive trend across markets in Asia as a
reduction in global growth forecasts by the IMF yesterday raised hopes that
global central banks may keep monetary policy accommodative to support economic
growth. All eyes are on the European Central Bank (ECB) which is likely to
announce a bond buying program of probably 550 billion euro tomorrow in a bid to
stave off the threat of deflation faced by the 19-member Euro area economy.
China’s Shanghai Composite extended an advance as financial companies rose while
Q4 GDP and December industrial output data, which topped analysts’ estimates
signaled signs of a recovery in the world’s second biggest economy. Hang Seng
rose but Japan’s Nikkei 225 fell amid caution ahead of the outcome of the Bank
of Japan policy meet today. Back home, the Sensex is likely to extend record
highs as the IMF’s prediction that India will become the world’s major fastest
growing world economy in the year through March 2017 and optimism over a revival
in demand & investments following last week’s interest rate cut lifted
sentiment. Shares of FMCG major ITC may be in focus today as it unveils its Q3
earnings numbers.
