Markets are likely to open in the green on Friday as trends on SGX Nifty suggest see a flat to a positive start. Benchmark indices are today expected to take cues from the global markets that surged as hints of progress in the US-China trade dispute and aggressive stimulus from the European Central Bank helped to counter worries about a global economic slowdown.
The European Central Bank yesterday cut interest rates further below zero, to minus 0.5 per cent, and will start open-ended bond purchases at $22 billion a month starting November 1 as President Mario Draghi made a final run at reflating the euro-area economy. READ MORE
Global markets were buoyed even further when US President Donald Trump said he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact. Meanwhile, core consumer prices in US rose 2.4 per cent in August and jobless claims dropped more than expected.
Wall Street advanced on Thursday, and the S&P 500 ended the session within striking distance of its all-time closing high. The Dow Jones rose 0.17 per cent, the S&P 500 gained 0.29 per cent, and the Nasdaq Composite added 0.3 per cent. Asian stocks advanced on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.2 per cent, while Japan’s Nikkei rose 0.4 per cent.
Back home, industrial production growth slipped to 4.3 per cent in July, mainly on account of the poor show by the manufacturing sector, according to official data released on Thursday. Retail inflation inched up marginally to 3.21 per cent in August from 3.15 per cent in July.
The Securities and Exchange Board of India (Sebi) is likely to defer the Budget proposal of raising minimum public shareholding in listed companies to 35 per cent, as per another Business Standard report. You can read both these reports in full on our website.
In addition, investors will continue to track stock-specific action, the Rupee's trajectory, oil price movement, and foreign fund flow for cues.
In the commodities markets, oil prices fell about 1 per cent on Thursday. Brent crude futures settled at $60.38 a barrel, shedding 43 cents.
Now, let's quickly take a look at the top headlines for the day -
>> States rule out GST rate cut on automobiles amid grim revenue situation;
>> Bank credit growth slumps to 10.24%, deposits at 9.73%, shows RBI data;
>> RIL's e-auction mechanism for new KG-D6 gas; bidding likely on Oct 11;
>> Hindustan Unilever emerges front-runner for Dinshaw's Dairy Foods
And before we wrap, here is a stock recommendation by CapitalVia Global Research Limited--
The brokerage recommends buying HDFC Bank above Rs 2,290 with a target Rs 2,350 and stop loss placed at Rs 2,240