Global cues, rupee trajectory, and oil price movement will be the top factors that will give direction to the markets today as investors continue to await measures from the government to spur growth.
Stocks of non-banking financial firms may be in focus today after the government said such firms would no longer have to maintain a certain level of redemption reserves against them.
On the taxation front, the Direct Tax Code (DTC) task force has recommended a significant increase in the highest income tax slabs, besides slashing the corporate tax rate to an even rate of 25 per cent for both domestic and foreign companies, as per a Business Standard report.
Globally, senior White House officials are reportedly discussing a temporary payroll tax cut to boost the economy. The People’s Bank of China has already taken steps to lower corporate borrowing costs while Germany is reportedly prepared to increase fiscal spending.
Yesterday, the S&P BSE Sensex ended 0.14 per cent higher at 37,402 levels, while the Nifty50, settled at 11,054 levels, up 0.05 per cent. In the currrency market, the Rupee tumbled 28 paise to close at an over six-month low of 71.43 against the dollar.
Asian shares extended their gains on Tuesday as hopes for stimulus in major economies tempered anxiety about a global recession. MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.04 per cent, while Japan’s Nikkei jumped 0.47 per cent. The improved mood was helped by a rally on Wall Street overnight, with the S&P 500 gaining 1.21 per cent and the Dow Jones up 0.96 per cent.
At 07:43 am, Nifty futures on the Singapore Exchange were trading 16.50 points lower at 11,040, indicating a negative start for the Indian market today.
Here's a look at the top headlines for the day -
-- RBI Governor Shaktikanta Das has said it's time to formally link lending rates to repo rate;
-- Cash-strapped DHFL makes fresh default on Rs 1,571-crore bond repayments;
-- PM Modi raises Imran Khan's 'extreme' anti-India rhetoric with Donald Trump; &
-- Sebi to relax buyback norms for companies with HF, NBFC subsidiaries.