Moneycontrol
Oct 18, 2016 09:12 AM IST | Source: Moneycontrol.com

Sensex, Nifty may see positive opening; GST meet begins today

The crucial three-day meeting of the all-powerful GST council is slated to begin today. Issues like the GST rate and state compensation formula will be in focus.


The market may be in green Tuesday as the SGX Nifty indicates a positive start. Asian stocks edged higher and the dollar consolidated recent gains though risk appetite was low as weak US markets prompted investors to stay on the sidelines.


In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 percent in early trade. Australia's benchmark index was up 0.3 percent.


Adding to the headwinds for emerging markets is the growing likelihood of a US rate increase in December which has lifted 10-year US treasury yields up by 25 basis points so far this month and boosted the dollar.


Wall Street ended lower as lower oil prices weighed on energy shares. The Dow Jones industrial average fell 0.29 percent, to 18,086.4, the S&P 500 slipped 0.3 percent to 2,126.5 and the Nasdaq Composite dropped 0.27 percent, to 5,199.82.


Back home, equity benchmarks lost over half a percent, in addition to 1.3 percent loss in last week as investors remained cautious. The 30-share BSE Sensex was down 143.63 points at 27529.97 and the 50-share NSE Nifty fell 63 points to 8520.40.


The crucial three-day meeting of the all-powerful GST council is slated to begin today. Issues like the GST rate and state compensation formula will be in focus.


Havells will announce Q2 results today. It is seen posting a strong quarter yet again. Poll estimates double digit volume growth and stronger margins


In forex markets, major currencies were confined in broad trading ranges on the back of soggy US data and the absence of fresh triggers.


The dollar edged slightly lower against a basket of currencies after hitting a seven-month high in the previous session. The yen bounced around near 104 to the dollar.

Crude oil prices dropped, weighed by oversupply concerns, with US crude dropping below 50 dollars a barrell as trade volumes spiked ahead of the October 20 expiry date for american futures contracts. The Iranian Vice President's comments that his country needs to regain its market share added to bearish sentiments but expectations of an upcoming opec production cut limited losses.

Gold price rose, partly lifted by steady flows into exchange-traded funds and a dip in the dollar after touching seven-month highs.

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