Opening Bell: Top cues that changed your market while you were sleeping
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With the passage of key GST legislations in Parliament, hints of only a gradual trimming of balance sheet by a top US Fed official and the market’s positive reaction to RBI’s policy review are likely to instil confidence among equity investors and help the market resume its uptrend. Here’s a look at what all might matter to Dalal Street on the day:
Cues from Singapore positive
At 6.06 am, Nifty50 futures on the Singapore Stock Exchange were trading 16 points higher at 9,283, indicating a positive opening for the domestic market.
Nifty50 forms 'Hanging Man' pattern
The Nifty50 fought hard to come out of the negative terrain for most of the session on Thursday, but eventually settled just a tad lower from its previous close. In the process, the index formed a `Hanging Man' pattern on the daily chart.
Traders were seen respecting the 9,218 level, which was recently the record high for the Nifty50, before it surpassed it. Recent activity suggests declines are being bought into and that gives analysts positive vibes. That said, certain technical indicators are still sending out bearish signals.
Parliament passes 4 GST legislations
This would pave the way for rollout of the Goods and Services Tax (GST) from the target date of July 1. The Central GST Bill, 2017; Integrated GST Bill, 2017; GST (Compensation to States) Bill, 2017; and Union Territory GST Bill, 2017, were returned by the Rajya Sabha after negation of a host of amendments moved by the Opposition parties.
Fed to trim bond holding gradually
A top US Fed official said the central bank would likely move in a measured way after it decides to reduce its bond holdings, AP reported. San Francisco Fed President John Williams said there was a case to be made for moving slowly as reducing the holdings would lead to higher longer-term rates.
Services PMI up in March
The domestic services sector expanded for the second month in a row as the impact of demonetisation faded away, helping generating more jobs, a survey showed. The Nikkei IHS Markit Services Purchasing Managers' Index advanced to 51.5 in March from 50.3 a month ago. A reading of over 50 indicates expansion.
Rupee at 20-month high
Keeping its bullish wave intact, the rupee on Thursday soared to a near 20-month high of 64.52, firming up by another 35 paise against the US dollar on massive dollar unwinding by exporters amid buoyant growth outlook by the Reserve Bank, said a PTI report. Overall, the forex market sentiment saw a sudden revival of enthusiasm after the RBI projected India's growth to strengthen for the current fiscal at 7.4 per cent, up from 6.7 per cent in 2016-17.
OMCs to review prices daily
Prices at petrol pumps may change every day, similar to what happens in many advanced markets, as state oil companies plan to review rates daily to align them with international prices, replacing the current practice of fortnightly revision. IndianOil, Bharat Petroleum and Hindustan Petroleum, which control nearly 95 per cent of the country’s fuel retail market, are considering ways to roll out the plan.
FPI bullish on domestic stocks
FPIs have infused Rs 4,555 crore in domestic equities so far this month. For the year so far, the institutional category has invested Rs 44,186 crore into domestic stocks, data available with NSDL suggests.
Global markets positive
Asian markets across Japan, Korea and Australia were trading positive in early morning trade. In overnight trade, the Dow Jones Industrial Average rose 14.8 points, or 0.07 per cent, to settle at 20,662. The S&P500 index advanced 4.54 points, or 0.19 per cent, to 2,357. The Nasdaq Composite index rose 14.47 points, or 0.25 per cent, to close at 5,878.
With the passage of key GST legislations in Parliament, hints of only a gradual trimming of balance sheet by a top US Fed official and the market’s positive reaction to RBI’s policy review are likely to instil confidence among equity investors and help the market resume its uptrend. Here’s a look at what all might matter to Dalal Street on the day:
Cues from Singapore positive
At 6.06 am, Nifty50 futures on the Singapore Stock Exchange were trading 16 points higher at 9,283, indicating a positive opening for the domestic market.
Nifty50 forms 'Hanging Man' pattern
The Nifty50 fought hard to come out of the negative terrain for most of the session on Thursday, but eventually settled just a tad lower from its previous close. In the process, the index formed a `Hanging Man' pattern on the daily chart.
Traders were seen respecting the 9,218 level, which was recently the record high for the Nifty50, before it surpassed it. Recent activity suggests declines are being bought into and that gives analysts positive vibes. That said, certain technical indicators are still sending out bearish signals.
Parliament passes 4 GST legislations
This would pave the way for rollout of the Goods and Services Tax (GST) from the target date of July 1. The Central GST Bill, 2017; Integrated GST Bill, 2017; GST (Compensation to States) Bill, 2017; and Union Territory GST Bill, 2017, were returned by the Rajya Sabha after negation of a host of amendments moved by the Opposition parties.
Fed to trim bond holding gradually
A top US Fed official said the central bank would likely move in a measured way after it decides to reduce its bond holdings, AP reported. San Francisco Fed President John Williams said there was a case to be made for moving slowly as reducing the holdings would lead to higher longer-term rates.
Services PMI up in March
The domestic services sector expanded for the second month in a row as the impact of demonetisation faded away, helping generating more jobs, a survey showed. The Nikkei IHS Markit Services Purchasing Managers' Index advanced to 51.5 in March from 50.3 a month ago. A reading of over 50 indicates expansion.
Rupee at 20-month high
Keeping its bullish wave intact, the rupee on Thursday soared to a near 20-month high of 64.52, firming up by another 35 paise against the US dollar on massive dollar unwinding by exporters amid buoyant growth outlook by the Reserve Bank, said a PTI report. Overall, the forex market sentiment saw a sudden revival of enthusiasm after the RBI projected India's growth to strengthen for the current fiscal at 7.4 per cent, up from 6.7 per cent in 2016-17.
OMCs to review prices daily
Prices at petrol pumps may change every day, similar to what happens in many advanced markets, as state oil companies plan to review rates daily to align them with international prices, replacing the current practice of fortnightly revision. IndianOil, Bharat Petroleum and Hindustan Petroleum, which control nearly 95 per cent of the country’s fuel retail market, are considering ways to roll out the plan.
FPI bullish on domestic stocks
FPIs have infused Rs 4,555 crore in domestic equities so far this month. For the year so far, the institutional category has invested Rs 44,186 crore into domestic stocks, data available with NSDL suggests.
Global markets positive
Asian markets across Japan, Korea and Australia were trading positive in early morning trade. In overnight trade, the Dow Jones Industrial Average rose 14.8 points, or 0.07 per cent, to settle at 20,662. The S&P500 index advanced 4.54 points, or 0.19 per cent, to 2,357. The Nasdaq Composite index rose 14.47 points, or 0.25 per cent, to close at 5,878.
