Global cues, stock-specific action, and foreign fund flow will be the top factors that will give direction to the markets today.
The rally in telecom stocks could continue for the fourth straight session after Reliance Jio joined rivals Vodafone Idea and Airtel in announcing an increase in tariffs over the next few weeks. The share price of Vodafone Idea has surged 130 per cent while Bharti Airtel has gained 25 per cent in the last three trading sessions after announcing tariff hikes.
In another major news, private sector lender YES Bank has reported asset quality divergence of Rs 3,277 crore, based on receipt of the Reserve Bank of India’s (RBI’s) final risk assessment report for 2018-19. According to the bank, it has already classified as NPA Rs 1,259 crore as on September 30, setting aside Rs 346 crore of provisions.
That apart, market participants will also track oil price movement, the value of rupee against the dollar, and foreign fund flow.
In US, major indexes fell from record levels on Tuesday as US President Donald Trump threatened to raise tariffs on Chinese imports if no deal is reached with Beijing. The Dow Jones Industrial Average fell 0.36 per cent, the S&P 500 lost 0.06 per cent, and the Nasdaq Composite added 0.24 per cent.
Asian shares also lumbered lower on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.25 per cent. Japan's Nikkei eased 0.2 per cent and South Korea 0.4 per cent. The SGX Nifty was also trading lower in the early hours, indicating a subdued start for the domestic indices.
In commodities, Brent crude futures stood at $60.91 a barrel early on Wednesday, after sliding 2.6 per cent overnight.
Yesterday, benchmark indices ended with nearly half a per cent gains. The S&P BSE Sensex added 186 points to settle at 40,470, and the broader Nifty50 index ended at 11,940 levels, up 57 points.
Here's a trading idea by Religare Broking who recommend buying HPCL around Rs 288-290 for a target of Rs 305 with stoploss at Rs 282.