Market may be volatile as global cues drag; ITC, L&T in focus

Moneycontrol Bureau Global markets are not supportive but the crucial decision on goods and service tax (GST) four slab rate structure may keep Indian market in green Friday. The market may remain volatile with global concerns overhang. SGX Nifty indicates a negative opening.

After the GST rates are finalised, ITC is expected to gain as fears of 40 percent rate abate. ITC holds 7 percent weightage in the Nifty.

The GST council has finalised a four-tier GST tax structure of 5, 12, 18 and 28 percent. Essential items are to be taxed at 5 percent while white goods like TV and refrigerators may see some tax relief. The GST panel has also approved cess on tobacco, luxury products and sin items. This cess will not be additional and won’t add to states or consumers burden. Taxation on gold will be decided upon the revenue flexibility.

Meanwhile, equity benchmarks ended at nearly four-month closing lows. The 30-share BSE Sensex was down 96.94 points at 27430.28 and the 50-share NSE Nifty fell 29.05 points to 8484.95, the lowest level since July 11, 2016.

In a big divestment push, the centre gears up to sell upto 3 percent stake in infrastructure major L&T today. The stake is a part of the government's SUUTI portfolio.

On earnings radar, Titan’s Q2 profit is seen higher by 30 percent. Growth in jewellery division will be key. United Breweries is expected to post yet another strong quarter, volume growth seen at 8 percent.

Among global markets, Asian shares slipped and the dollar nursed losses in a week marked by growing uncertainty about the outcome of the US presidential election. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent in early trade, down 1.4 for the week.

Investors have been unnerved in recent days by signs that the US presidential race between Democrat Hillary Clinton and Republican Donald Trump was tightening just days before Tuesday's vote.

The S&P 500 fell for an eighth straight session, its longest losing streak since the 2008 financial crisis, as Facebook shares weighed and investors grappled with uncertainty over next week's US presidential election.

Facebook shares tumbled 5.7 percent as the world's largest online social media network warned that revenue growth would slow this quarter. The stock was the biggest drag on the S&P 500 as well as on the tech-heavy Nasdaq, which also posted its eighth straight day of losses.

Oil prices edged up in early trading, stabilising after five straight days of falls triggered by a surge in US crude inventories and doubts over the ability of oil producers to coordinate an output cuts.

Gold edged higher in response to a lower dollar and also uncertainty about the outcome of a tight US presidential race.