The Nifty is likely to open higher on Thursday and touch fresh record highs tracking muted handover from Wall Street. The Nifty touched a record high and closed above its crucial resistance level of 9,400 for the first time ever.
The index remained in the grip of bulls throughout the trading and made a strong bull candle on the charts as it broke out of the trading range seen in the last 8 sessions.
If the momentum sustains, this move can get extended up to levels around 9,550. Traders are advised to create fresh longs with a stop below 9,330 levels for said targets.
Stay tuned with Moneycontrol.com to find out what happens in currency and equity markets on today.
Wall Street mixed as Trump fires FBI head
The US market ended mixed on Wednesday on President Donald Trump's abrupt dismissal of his FBI chief as well as corporate earnings from Walt Disney and Nvidia. However, Nasdaq closed at a record high.
Trump said he fired Federal Bureau of Investigation Director James Comey over his handling of an email scandal involving then-Democratic presidential nominee Hillary Clinton, said a Reuters report.
However, Comey had also been leading an investigation into whether Trump's 2016 presidential campaign colluded with Russia, it said.
The Dow Jones Industrial Average fell 0.16 percent to end at 20,943.11 while the S&P 500 gained 0.11 percent to 2,399.63. The Nasdaq Composite added 0.14 percent to reach a record high close 6,129.14.
The Nifty futures on the Singapore Stock Exchange were trading 26 points higher at 9,445 indicating a flat-to-positive opening for the domestic market.
Oil prices rebounded
Oil prices rose after Iraq and Algeria joined Saudi Arabia in supporting an extension of OPEC supply cuts and US inventories fell more than expected, said a Reuters report.
US crude rose 3.2 percent to USD 47.35 per barrel and Brent was last at USD 50.22, up 3.06 percent on the day.
Dollar advances to eight-week high
A modest recovery in treasury yields helped the US dollar climbed to eight-week highs against the safe-haven yen. The surge in oil prices also helped the sentiment. The dollar rose 0.2 percent to 114.27 yen, after earlier rising to an eight-week peak of 114.35 JPY.
The greenback was also up 0.1 percent against the Swiss franc at 1.0086 francs. Against a basket of six currencies, the dollar was flat at 99.674.
Hero MotoCorp Q4 net falls to Rs 717.8 crore
After battling demonetisation, two-wheeler maker Hero MotoCorp suffered another blow in March quarter from BS III ban which dragged its net profit 13.9 percent to Rs 717.8 crore from Rs 833.3 crore in the year-ago period.
Deep discounts the company had offered to exhaust its inventory of BS III vehicles before April 1, 2017, took a toll on its margins, Hero MotoCorp said in a filing to exchanges. The company pegged revenue impact due to a discount on the sale of BS III vehicles at Rs 193.28 crore.
Tech Mahindra to lay off 1,500-2,000 employees
Following recent news of several IT majors firing staff, Tech Mahindra is also planning to lay off nearly 1500-2,000 employees, sources told CNBC-TV18. Tech Mahindra will be conducting a company-wide performance review and could remove many under-performers.
The layoffs are likely to be completed in the ongoing quarter, the source added.
Investors' wealth nears USD 2 trillion
The stock market investor wealth is fast nearing the USD 2 trillion mark, following a dream run in share valuations that has propelled the benchmark Sensex to a new peak.
At the close of trade on Wednesday, the total market capitalisation of BSE-listed companies stood at Rs 1.26 lakh crore (USD 1.95 trillion) — just about 2 per cent away from the USD 2 trillion mark, said a report.
NSE to effect changes to 5 indices from May 26
Leading bourse NSE has announced changes in five indices including Alpha 50, High Beta 50 and Low Volatility 50 as part of its quarterly review, said a report. Nifty 100 Low Volatility 30 and Nifty Midcap Liquid 15 index will also see changes.
The changes will become effective from May 26, NSE said in a circular.
Under the changes, Bank of India, Dewan Housing Finance Corporation, Federal Bank, Infibeam Incorporation, Lakshmi Vilas Bank, JM Financial, MRF, Natco Pharma, Sun TV Network, Mangalore Refinery & Petrochemicals and Rural Electrification Corporation will be included in Nifty Alpha 50 index.
Banks don’t need to wait 3 months to start recovery
Banks can initiate loan recovery proceedings without waiting for an account to be formally classified as non-performing, as the latest amendments to banking rules allow for faster resolution of their bad debt problem, said a media report quoting a senior government official.
Under Reserve Bank of India rules, a loan becomes non-performing if the interest or installment of principal remains overdue for more than 90 days.
46 companies will report Q4 results today
As much as 46 companies are scheduled to report their results for the quarter ended March 31 on Thursday which include names like Arvind, Asian Paints, Force Motors, Glenmark Pharma, HCL Technologies, ICRA, MT Educare, Aarti Industries, Glaxo Consumer, Granules India, Gujarat Pipavav, ITD Cementation and Kirloskar Industries.