Firm start for indices in the offing

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 91.50 points at the opening bell tracking firm Asian stocks. The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November 2016 series to December 2016 series. The near month November 2016 derivatives contracts expire on Thursday, 24 November 2016.

In overseas stock markets, Asian stocks gained in the wake of solid gains in US markets overnight, while the Japanese yen briefly strengthened after a powerful earthquake rocked northern Japan. A powerful earthquake that rocked northern Japan today, 22 November 2016, appeared to have been taken in stride by investors. The quake generated a tsunami that hit the same northern Pacific coast devastated by a massive quake, tsunami and nuclear disaster in 2011. US stocks closed higher at fresh records yesterday, 21 November 2016, aided by a jump in oil prices and a pullback in the dollar, giving the indices their third simultaneous all-time closing highs this year. Global risk assets, led by US stocks and the dollar, have led gains since Republican Donald Trump's upset election win early this November. Expectations that Trump's administration will usher in expansionary fiscal policies have seen a dramatic selloff in US Treasuries and fueled a surge in the dollar.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1310.82 crore yesterday, 21 November 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1211.01 crore yesterday, 21 November 2016, as per provisional data.

Among corporate news, Axis Bank said it proposes to raise funds by issuing unsecured redeemable non-convertible subordinated debentures (Basel- III compliant Tier II debentures) (Series - 25) of the face value of Rs 10 lakh each for cash at par aggregating to Rs 1800 crore. The board of directors of the bank will consider the proposal to issue and allot the above securities through circular resolution. The announcement was made after market hours yesterday, 21 November 2016.

Meanwhile, banking, auto and metal sector stocks and index heavyweights HDFC and ITC led losses for key benchmark indices on the first trading session of the week yesterday, 21 November 2016. The Sensex lost 385.10 points or 1.47% to settle at 25,765.14, its lowest closing level since 24 May 2016.

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