RBI hawkish, but hope prevails: Will Nifty head to 6100?
The Reserve Bank of India continues to be cautious about the state of the economy. Key Indian equity benchmark indices continued to be on a roll Thursday, with the 50-share Nifty topping the psychological 6000-mark.
The Reserve Bank of India continues to be cautious about the state of the economy. In its macro-economic report ahead of today's credit policy, the central bank has maintained that monetary space is limited this fiscal. It also expects only a modest recovery in the economy.
Key Indian equity benchmark indices continued to be on a roll Thursday, with the 50-share Nifty topping the psychological 6000-mark. The Sensex ended the day at 19735.77, up 231.59 points and the Nifty gained 69.15 points to close at 5999.35.
In key earnings, from the cement pack, ACC and Ambuja Cements will report numbers today. According to a CNBC-TV18 poll, ACC's net sales is seen almost 7 percent higher at Rs 3,055 crore. Profits are seen at Rs 325 crore. Margins are likely to be hit due to hike in railway freight and increase in rates of bulk diesel. For Ambuja Cements, the topline is seen flat at Rs 2,664 crore.
In Asia, Japanese markets are shut today on the back of its Constitution Day. Major Asian markets are trading higher today.
Meanwhile, the US markets finished near session highs on Thrusday, propelling the S&P 500 to a fresh intraday high, as Wall Street cheered a better-than-expected jobless claims report and after the European central bank cut its key interest rate. The CBOE volatility index slid below 14.
On the economic data front, weekly jobless claims dropped to its lowest rate since January 2008 last week. The four-week average declined 16,000 to 342,250. Also the US trade deficit declined more than expected in March as imports posted their biggest decline since 2009.
In key data to watch out for in the US today, non-farm payrolls are expected to come in higher at 153,000. Meanwhile unemployment rate is seen remaining unchanged at 7.6%. Factory orders may see a 2.8 % contraction for the month of March. Also watch out for data from the ism non-mfg index.
European markets pared losses to close in the green.
The European central bank on Thursday took decisive steps to spur the eurozone economy. The ECB cut its main refinancing rate by 25 basis points to a record low of 0.5 percent.
The marginal lending facility rate, the cost at which banks borrow from it, has been cut to 1 percent from 1.5 percent. The ECB decided to leave its deposit rate, the rate it charges banks to leave cash with it, at zero percent.
In the currency space, the euro slipped marginally, but still above 1.30 to the dollar. The dollar index is above 82.20 levels
In commodities, Brent crude rallied to USD 102 per barrel on ECB's policy boost.
From the precious metals space, gold hovered around USD 1467 an ounce.
Back home, the government has finally opened the doors for IKEA. The Union Cabinet has cleared the country's first 100% single-brand retail foreign direct investment proposal. Swedish furniture giant IKEA can now set up stores after its Rs 10,500 crore proposal got the green light. The head of IKEA India told CNBC-TV18 that they welcome the move.