Investors will look at global cues, key Cabinet decisions, stock-specific developments, and oil price movement for market direction today.
The Cabinet Committee on Economic Affairs yesterday approved the strategic disinvestment of the Centre’s entire stake in Bharat Petroleum, Shipping Corp, THDC India, and NEEPCO, and most of its stake in Container Corp while giving up management control in these companies.
For the telecom sector, the Union Cabinet approved a two-year moratorium on payment of pending spectrum auction instalments. The latest move is expected to give more legs to the rally in the telecom sector which has been going on for the last four trading sessions after Bharti Airtel, Vodafone Idea, and Reliance Jio all announced they will soon raise their tarrifs.
In company-specific news, the Reserve Bank of India (RBI) yesterday superseded the DHFL board over governance concerns and defaults on payment obligations.
On the regulatory front, the Securities and Exchange Board of India has now made it mandatory for all listed companies to make public disclosures on loans defaults.
Moving on to international developments, the minutes of the last US Fed meeting in October indicated that the Federal Reserve may not lower interest rates again anytime soon even though the officials stressed that risks to the US economy remained elevated.
Asian shares slid on Thursday as a fresh row between Washington and Beijing over U.S. bills intended to support protesters in Hong Kong could complicate their trade negotiation. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.16 per cent while Japan's Nikkei dropped 0.25 per cent.
On Wall Street, all three major indexes fell, with the S&P 500 losing 0.38 per cent. The Dow Jones Industrial Average fell 0.41 per cent, and the Nasdaq Composite dropped 0.5 per cent. The SGX Nifty was also trading lower in the early hours, indicating a subdued start for the domestic indices.
In commodities, oil prices surged more than 2 per cent on Wednesday after a better-than-expected U.S. crude inventories report. Brent crude futures settled at $62.40 a barrel, gaining $1.49.
Yesterday, the S&P BSE Sensex climbed 0.45 per cent to settle at 40,652 and the broader Nifty50 index ended at 11,999, up 0.49 per cent.
According to analysts, going forward, if Nifty is able to sustain above 12,000 in the coming trading sessions, it will be a set the path towards a newer high surpassing the previous high of 12,103. For this week, a range-bound movement seems likely with some profit booking in PSU bank stocks and pharma stocks.
Here's a trading idea by CapitalVia Global Research Limited which recommends buying TCS above Rs 2,140 for the target of Rs 2,190 with stoploss at Rs 2,090.