Market may rise on positive global signals

Market is seen opening higher tracking positive leads from Asian markets and overnight gains on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 38 points at the opening bell.

Overseas, Asian shares rose after the US Federal Reserve signalled a cautious approach to future rate hikes and the reduction of its $4.5 trillion of bond holdings. Investors also looked ahead to an OPEC gathering widely expected to extend output cuts.

US stocks closed higher for a fifth-straight day yesterday, 24 May 2017, buoyed by the minutes of the Federal Reserve's May meeting. The S&P 500 rose 5.97 points, or 0.3%, to close at 2,404.39. The Dow Jones Industrial Average also rose for a fifth straight day, gaining 74.51 points, or 0.4%, to finish at 21,012.42, just 0.5% below its record close set on 1 March 2017. The Nasdaq Composite Index climbed 24.31 points, or 0.4%, to end at 6,163.02.

Minutes from the Fed's last policy meeting showed policymakers agreed they should hold off on raising interest rates until it was clear a recent US economic slowdown was temporary. The minutes also showed that policymakers favored a gradual reduction in its massive balance sheet. Fed staff proposed that the central bank set a cap on the amount of bonds that would be allowed to run off each month, initially setting it at a low level and raising it every three months.

Closer home, foreign portfolio investors (FPIs) purchased shares worth a net Rs 81.88 crore yesterday, 24 May 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 197.31 crore yesterday, 24 May 2017, as per provisional data.

Among corporate news, shares of Bharti Airtel will be in focus. With respect to media reports titled "Moody's revises Airtel rating outlook to negative from stable," Bharti Airtel clarified that Moody's Investors Service has affirmed its Baa3 issuer rating and senior unsecured debt ratings. Moody's has also affirmed the Baa3 ratings on the senior unsecured notes issued by Bharti Airtel International (Netherlands) B.V., which are irrevocably and unconditionally guaranteed by Bharti Airtel. At the same time, Moody's has changed the outlook on the ratings to negative from stable, Bharti Airtel said. The clarification was made after market hours yesterday, 24 May 2017.

NHPC said that the company's board of directors in its meeting scheduled to be held on 30 May 2017 will consider the proposal for raising of Rs 1756 crore through issuance of 'W' series corporate bonds on private placement basis. The proposed issue is out of Rs 4500 crore already approved by the shareholders in 40th Annual General Meeting held on 22 September 2016. The announcement was made after market hours yesterday, 24 May 2017.

Key benchmark indices registered modest losses amid volatility yesterday, 24 May 2017. The barometer index, the S&P BSE Sensex, fell 63.61 points or 0.21% to settle at 30,301.64. The Nifty 50 index fell 25.60 points or 0.27% to settle at 9,360.55. Sentiment was dampened by escalating Indo-Pak tensions. Moody's downgrading its sovereign credit rating on China also hurt risk appetite.

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