Investors are likely to see a firm beginning to the week as a slew of measures, including the rollback of super-rich tax on the foreign portfolio investors and upfront infusion of capital into the public sector banks, announced by finance minister Nirmala Sitharaman on Friday is expected to give the much-needed impetus to market sentiment.
However, the gains may be capped due to weak global cues. US President Donald Trump, on Friday, announced he would hike existing tariffs, applied to about $250 billion worth of Chinese goods, to 30 per cent from 25 per cent as of October 1. He also said a new round of tariffs on $300 billion in goods will be taxed at 15 per cent, up from 10 per cent.
Later in the week, market participants will adjust their futures and options (F&O) positions as August series contracts expire on Thursday. On Friday, the June quarter GDP numbers are scheduled to be released. Data on forex reserves, infra output, and bank loan growth will also be released on the same day.
Globally, Asian shares were a sea of red on Monday amid Sino-US trade tensions. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.8%, and Australia slipped 1.7%. Japan’s Nikkei lost 2.3%.
SGX Nifty, however, suggests a gap-up opening for the domestic indices today as the Singaporean Exchange for Nifty Futures was up 61 points at 7.40 am.
On Friday, the S&P BSE Sensex had closed with gains of 0.6% at 36,701 while the Nifty50 settled up 0.8% at 10,829.
Before we wrap, here are the top headlines for the day--
>> India leads Asian peers in risky corporate debt; interest payouts up 15%
>> The RBI's board is scheduled to meet today amid expectations of taking up Bimal Jalan committee's report.
At last, stock recommendation for the day by Angel Broking--
The brokerage recommends buying Bharat Electronics at current levels for a target of Rs 111 over the next few days. The stop loss can be placed at 92.40.