Market may open higher

Key indices may open higher on firm Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 45.50 points at the opening bell.

In overseas stock markets, Asian stocks rose driven by the Bank of England's aggressive stimulus measures, but with traders keeping a wary eye on US jobs data due later in the global trading day. The Bank of England yesterday, 4 August 2016 cut its benchmark interest rate to 0.25% from 0.5%, the lowest in its 322-year history. It expects to cut the rate further in the months ahead. The central bank also revived a UK government bond-buying program, also known as quantitative easing, that has been on pause since 2012, and said it would begin buying corporate bonds. US stocks ended little changed yesterday, 4 August 2016 as investors kept to the sidelines ahead of US payrolls report for July. The monthly hiring data due later in the global day will help investors gauge the health of the economy and possibly offer insight as to when the Federal Reserve will raise interest rates again.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 559.49 crore yesterday, 4 August 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 527.11 crore yesterday, 4 August 2016, as per provisional data.

Among corporate news, Bharat Electronics, Bharat Forge, GlaxoSmithkline Consumer Healthcare, Pfizer, Aegis Logistics, Marico and NDTV are scheduled to announce their June quarter results today, 5 August 2016.

Nestle India turns ex-dividend today, 5 August 2016, for interim dividend of Rs 12 per share for the year ending 31 December 2016.

The India Meteorological Department in its weekly update on rainfall said yesterday, 4 August 2016 that during the week from 28 July to 3 August 2016, rainfall was above long period average (LPA) by 6% over the country as a whole. For the country as a whole, cumulative rainfall during this year's monsoon for July 2016 was 7% above LPA. For the country as a whole, cumulative rainfall during this year's monsoon has so far upto 3 August been 1% above LPA.

Revenue Secretary, Ministry of Finance in its presentation on next steps required for the implementation of Goods and Service Tax (GST) constitutional amendment bill after the Rajya Sabha passed the GST bill said yesterday, 4 August 2016 that the target date of GST roll out is 1 April 2017. The passage of the Constitution Amendment Bill by the Parliament shall happen by the first week of August 2016. The bill requires ratification by 50% states after its passage by the Parliament, followed by the Presidential assent of Constitution Amendment and notification in the official Gazette. Cabinet will approve formation of GST Council which will make recommendation of model GST laws. Cabinet will approve the CGST and IGST laws by Centre and SGST laws by all states which have to be passed by the Centre and by all states respectively, which should happen by winter session this year. GST rules will be notified later.

Meanwhile, key benchmark indices eked out minuscule gains in a volatile trading session yesterday, 4 August 2016. The Sensex rose 16.86 points or 0.06% to settle at 27,714.37, its highest closing level since 2 August 2016.

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