20/11/2015
The key domestic benchmarks are poised to witness a bearish opening today as traders book profits following Thursday’s stellar gain when the 30-share Sensex posted its single-day percentage gain in nearly seven weeks as the Fed’s signal that it may undertake a gradual pace of interest rate tightening and fresh reform impetus from the Modi government bolstered the lure for risky assets. Amidst a lackluster trend in Asian stocks and a flat finish at Wall Street overnight, coupled with weakness in the CNX Nifty Index futures for November delivery which fell 0.21 per cent or 16.5 points at 7,839.5 at 10:41 am Singapore time, Dalal Street is set to open lower on Friday. Big –tickets reforms will however, offer support to the Sensex. Ahead of the crucial Winter Session of Parliament which begins next week, the government seems to be making strong efforts to reach out to the opposition and try & resolve the deadlock on the GST bill that remains stuck due to political headwinds. The centre approved a 10 per cent stake stale in Coal India, gave the nod to the IPO of Cochin Shipyard and announced a five-year interest subsidy scheme for exporters. The government also said that it would auction eight coal mines to steel, cement and electricity companies in the fourth tranche of coal auctions due in January, as part of its plans to auction coal mines to private players. The Sensex on Thursday soared by 359.4 points or by 1.41 per cent to end at 25,841.92 as the government’s announcement regarding the Coal India stake sale, IPO plan for Cochin Shipyard and interest subsidy scheme for exporters brightened the outlook for Asia’s third biggest economy.
Asian stocks were trading mixed as investors took a breather after an impressive rally fueled by hopes that the US Fed will initiate a gradual pace of rate hikes following an initial lift-off in borrowing costs most likely in December. China’s Shanghai Composite posted modest gains led by a rally in technology stocks, but Hang Seng fell and Japan’s Nikkei 225 retreated as a stronger yen hit exporters. Wall Street ended little changed on Thursday following the biggest rally in nearly a month on Wednesday fueled by dovish Fed minutes
