Corporate results and the latest signs of progress in US-China trade relation will be the top factors guiding investor sentiment today.
China and the United States have agreed to roll back tariffs on each others’ goods as part of the first phase of a trade deal, officials from both sides said on Thursday, in further signs of progress.
In the results corner, Tata Power, Mahindra & Mahindra, Bank of Baroda, and Nestle India are among the 180 companies scheduled to announce their September quarter results today.
Analysts expect Bank of Baroda to report muted loan growth and marginally higher net interest income on a sequential basis. Reliance Securities, for instance, expects the net profit to decline 52.2 per cent QoQ to Rs 339.3 crore.
Meanwhile, India’s credit ratings outlook was cut to negative from stable by Moody’s Investors Service on concern the government won’t be able to help stunted economic growth.
Equity markets witnessed yet another record-breaking session on Thursday. The S&P BSE Sensex closed at a fresh closing peak of 40,653.74, up 184 points and the broader Nifty50 index closed above 12,000-mark at 12,016, up 50 points.
Analysts say Nifty's close above the 12,000-mark is a positive in the short-term and it can be seen inching towards 12,200 with crucial support at 11,900 levels.
On the global front, MSCI’s gauge of Asia-Pacific shares outside Japan edged up 0.2 per cent in early trade while Tokyo's Nikkei jumped 0.75 per cent to a 13-month high. On Wall Street, the Dow and S&P 500 notched record closing highs on Thursday after the latest developments in the US-China front. The Dow Jones Industrial Average rose 182 points, the S&P 500 gained 8.4 points, and the Nasdaq Composite added 24 points. SGX Nifty, though, was trading in the red in the early session, indicating a negative start for domestic indices.
In commodities, oil rose above $62 a barrel on Thursday. Brent crude, the global benchmark, rose 55 cents to settle at $62.29 a barrel.
Here's a trading idea. Anand Rathi Shares and Stock Brokers recommends buying Asian Paints at current market price for the target of Rs 1,900 with stop-loss placed at Rs 1,790.