Markets likely to open firm; ECB likely to inject more stimulus

Markets are likely to witness strong opening today after the European Central Bank (ECB) hinted to inject more stimulus.

The early indicator, SGX Nifty has surged by 92 points at 8,338 mark.

In the macro-economic front, the Reserve Bank of India (RBI) on Thursday announced a gold monetisation scheme (GMS) that allows individuals, trusts and mutual funds to deposit gold with banks and earn an interest on it. Prime Minister Narendra Modi will launch the scheme on November 5.

Government is likely to meet its fiscal deficit target this year despite risks of shortfall in tax collection and disinvestment proceeds, as it may go for a small reduction in public spending, says a report.

RESULTS CALENDAR

Asian Paints, Bharti Infra, Cholaman Investment & Finance, Rallis India, Symphony will announce their Q2 earnings today.

GLOBAL MARKETS

Asia extended a global stocks rally on Friday after the European Central Bank signalled its readiness to inject more stimulus, helping the dollar scale a fresh two-month peak against the euro.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6%, on track for a modest weekly loss of about 0.1%.

Japan's Nikkei stock index was up 2.3%, poised to gain more than 3% for the week.

After the ECB held policy steady at its meeting on Thursday as widely expected, central bank chief Mario Draghi told a news conference that ECB policymakers were "open to the full menu of monetary policy" to stoke the euro zone economy as needed.

STOCKS TO WATCH

Wipro reported 7% net profit growth in the September quarter to Rs 2,235 crore.

Reliance Communications is planning to roll out a third generation (3G) intra-circle roaming (ICR)-like agreement to continue 2G service in Bihar, West Bengal and Assam after its right to use 2G spectrum expires in December.

Corruption watchdog Central Vigilance Commission has sought a report from Central Bureau of Investigation (CBI) and Bank of Baroda in connection with an on-going probe in alleged fraudulent transactions of Rs 6,100 crore to Hong Kong.

Zydus Cadila posted a 41 per cent growth in consolidated net profit at Rs 391 crore for the quarter ended September 30, compared to a net profit of Rs 278 crore in the same period last year.

Bajaj Auto is set to launch four new motorcycles in the market soon as part of its plans to capture over 22% share by the end of this fiscal.