Market may be cautious ahead of Trump inauguration; banks eyed

The market may open slightly weaker on Friday, as indicated by the trend on SGX Nifty. Global markets were slightly lower as investors maintained caution ahead of US President-Elect Donald Trump’s inauguration later in the day. Asian markets slipped in morning trade as risk sentiment soured ahead of Trump’s event. The Nikkei and Hang Seng slipped 0.14 percent and 0.72 percent, respectively. Investors now await key data from China as it is set to announce its GDP, retail sales as well as industrial production figures on Friday. The US markets closed lower, with real estate falling around 1 percent, as investors eagerly awaited Trump's inauguration. The Dow Jones closed about 70 points lower, with Goldman Sachs contributing the most losses. The index also recorded a five-day losing streak. The S&P 500 and Nasdaq too lost 0.36 percent and 0.28 percent, respectively. The country also saw weekly jobless claims drop 15,000 to 2,34,000— the lowest level in 40 years. Housing starts surpassed expectations after it spiked 11.3 percent in December.In Europe, markets closed slightly lower after the European Central Bank announced it would keep its monetary policy stance unchanged. President Mario Draghi of the ECB said that the bank stood ready to increase its asset purchases in size and duration if it becomes necessary. The FTSE index ended the day half a percent lower. In India, equity benchmarks as well as broader markets closed higher for second consecutive session on Thursday as investors preferred to stay on sidelines ahead of corporate earnings and Union Budget. The 30-share BSE Sensex was up 50.96 points at 27308.60 and the 50-share NSE Nifty gained 18.10 points at 8435.10 while the BSE Midcap and Smallcap indices advanced 0.3 percent each.Stocks in focus will be Axis Bank and Yes Bank. Axis Bank disappointed analysts with its December quarter earnings on Thursday. Profit plunged sharply by 73.3 percent year-on-year to Rs Rs 579.6 crore despite sharp surge in other income and lower tax cost. Slow growth in net interest income and higher provisions dented profitability. Meanwhile, Yes Bank beat analysts' expectations, with profit rising 30.6 percent to Rs 882.6 crore compared to year-ago period. The growth was driven by strong net interest income, other income and lower provisions.Technology stocks may also be in focus as pressure on back of talks of re-introduction of Immigration Bill continues. 
Infosys chief Vishal Sikka admits that there is a sense of anxiety with Donald Trump entering the oval office. He added that the artificial intelligence is next big thing for the IT sector and that is bound to impact the present jobs picture.

Among other asset classes, the dollar registered fall as investors scout for clarity on his policies and whether it will boost growth in the economy. Crude oil prices saw a gain after the international energy agency said oil markets had been tightening even before cuts agreed by OPEC and other producers took effect. Swelling US crude stockpiles, however, limited the rebound from a one-week low Gold prices slipped marginally on Thursday, but the yellow metal still held above 1200 dollars an ounce-mark.