Market poised for firm start

The market is likely to open higher on positive Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 35 points at the opening bell. Asian markets edged higher on Thursday, 19 June 2014 on the optimism of Wall Street after the US Federal Reserve gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy.

Kotak Mahindra Bank may see action as the Reserve Bank of India after market hours on Wednesday, 18 June 2014 notified that the foreign share holding in the private sector bank by Foreign Institutional Investors (FIIs) under Portfolio Investment Scheme (PIS) has reached the trigger limit. Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India.

PSU stocks may be in focus on reports that the finance ministry is working on a road map to divest stake in big state-run companies, which include Coal India, Sail, MMTC, NMDC, NHPC and Nalco. The government holds 80% or more stakes in these companies.

Moody's Investors Service on Wednesday, 18 June 2014 affirmed the credit ratings on Tata Steel as well as Tata Steel UK Holdings, saying that their profitability and cash generation are unlikely to deteriorate in the next 12 months.

Banking and realty stocks led decline as Indian stocks on Thursday, 18 June 2014, as crude oil prices rose and the rupee fell against the dollar after a flare up of militant violence in Iraq, a key oil exporter. The S&P BSE Sensex lost 274.94 points or 1.08% to settle at 25,246.25, its lowest closing level since 16 June 2014.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 366.18 crore on Wednesday, 18 June 2014, as per provisional data from the stock exchanges.

Asian markets edged higher on Thursday, 19 June 2014 on the optimism of Wall Street after the US Federal Reserve gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy. Key benchmark indices in Singapore, Taiwan, Hong Kong and Japan rose by 0.06% to 1.52%. Key benchmark indices in Indonesia, China, and South Korea fell by 0.03% to 0.31%.

Chinese Premier Li Keqiang vowed that his nation's economy will not suffer a so-called "hard landing," a report said. Li said that the government was taking measures to ensure that gross domestic product grows no slower than an annual rate of 7.5% so as to ensure job creation, the report added.

US stocks rallied on Wednesday, 18 June 2014 gaining the most in four weeks, after the Federal Reserve chief signaled no hurry to raise rates.

The Federal Reserve said growth is bouncing back and the job market is improving as it continued to reduce the monthly pace of asset purchases. The Federal Open Market Committee trimmed bond-buying by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year.

After a two-day policy meeting which concluded on Wednesday, 18 June 2014, the US central bank slashed its forecast for US economic growth this year to a range of between 2.1% and 2.3% from an earlier projection of around 2.9 %. But the Fed's forecasts for 2015 and 2016 were unchanged, and it expressed confidence that the recovery was on track, added the report.

Fed Chair Janet Yellen emphasized the need to put more Americans back to work and downplayed concerns about asset-price bubbles and incipient inflation. Yellen repeated that the Fed is likely to "reduce the pace of asset purchases in further measured steps" and that it expects interest rates to stay low for a "considerable time" after the buying ends. She declined to offer a more specific timetable for the first interest-rate increase since 2006, saying there's "no mechanical formula."

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