What changed your market while you were sleeping
Cues from Singapore are hinting at a positive start for the domestic market, even as Friday’s less-than-expected GDP forecast for FY18 and bearish formations on weekly technical charts suggest any gain may not be sustainable.
Let’s check out what might influence Dalal Street all through Monday:
Singapore trading sets stage for positive opening
At 6.30 am, Nifty futures on the Singapore Stock Exchange were trading 46 points, or 0.43 per cent, higher at 10,626.50, indicating a positive start for the Nifty50 in India.
Nifty50 makes ‘Hanging Man’ on weekly charts
Going ahead, the 10,500 level should act as immediate support for the index, while on the upside, only a hold above the 10,566 level can instil confidence of further upside. “The pattern on the weekly charts is not that impressive, as it is looking like a Hanging Man, which at times results in either a pause or correction,” said Mazhar Mohammad, Chief Strategist – Technical Research; Trading Advisory at Chartviewindia.in.
First advance estimate pegs GDP growth at 6.5 per cent
India’s gross domestic product (GDP) will grow by 6.5 per cent in the current fiscal, sharply down from 7.1 per cent growth clocked in 2016-17, the CSO said as businesses were hit by the chaotic launch of GST last July. “The GST transition impact is clearly visible,” said a Reuters report quoting Shubhada Rao, Chief Economist at YES Bank.
US sees tepid jobs growth in December
The US job growth slowed more than expected in December amid a decline in retail employment, but a pickup in monthly wages pointed to labour market strength. Non-farm payrolls increased by 1,48,000 jobs last month. Economists polled by Reuters had expected a rise of 190,000. However, shrugging off the numbers, the US stocks the headline indices S&P 500, Nasdaq notched their best weekly gains in more than a year.
Fed’s Williams’ benign view on rate hikes
The Federal Reserve should raise interest rates three times this year given the already strong economy will get a boost from tax cuts, and can tighten more or less aggressively if needed, a key US rate-setter said on Saturday. In an interview, San Francisco Fed President John Williams painted a benign picture of the world’s largest economy operating at or near its full capacity over the next few years.
Nifty50 firms to report double-digit growth
The aggregate net profit of the Nifty 50 companies is expected to grow in double digits for the second consecutive quarter following festive demand and a low base effect in case of some companies due to the demonetisation measure during the year-ago quarter
Govt, RBI red-flag Sebi proposal
The Securities and Exchange Board of India (Sebi) proposal requiring listed companies to disclose a loan default within a day of it happening is unlikely to be implemented, with both the government and the Reserve Bank of India (RBI) not keen on such a measure, said two people close to the development.
Jaypee Group recasts outstanding FCCBs
The Jaypee Group has restructured its outstanding foreign currency convertible bonds (FCCBs) after renegotiating with investors, including marque Wall Street names like Goldman Sachs and Deutsche Bank. The deal will allow the cash-strapped infrastructure conglomerate to delay its debt obligation by about four years, giving it more room to meet immediate liabilities arising out of ongoing legal battles, said people in the know.