Monday 23 December 2013

Sensex to open on a positive note

The Nifty will look at breaching past the 6300 mark today as it gears for some choppiness later in the week.

The holiday season is here and the market seems to be in good cheer to begin with. Global sentiment will receive a boost from the fact that the International Monetary Fund is raising its outlook for the U.S. economy, as a budget deal in Washington and the Federal Reserve’s plan to taper its bond buying ease doubts about the future, IMF Managing Director Christine Lagarde was quoted as saying.

The outlook is a positive start. The Nifty will look at breaching past the 6300 mark today as it gears for some choppiness later in the week. With market closed on Wednesday for Christmas and the F&O expiry on Thursday, there could be some swings though volumes may be relatively low.

Local political factors will take a back seat till we reach near the general elections and therefore global events and liquidity flows would largely determine the direction of the market. 

In the short-term, we expect markets to consolidate as investors look at reassessing the impact of the RBI status quo as well as Fed’s modest tapering.

A fall in vegetable prices is likely to ease headline inflation and retail inflation to 6.5 % and 9.20 % respectively in December, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan was quoted as saying.

Amid slowing economy, indirect tax collections grew by 5% in the April-November period of this fiscal, a report stated.

China’s central bank sought to allay fears of a cash crunch on Friday, saying it has added $50 billion in three days to the interbank market, a report stated.

Hong Kong's Hang Seng was up 0.4% while South Korea's Kospi index added 0.57%. China's Shanghai index was trading lower.

Infosys director and chief financial officer V Balakrishnan will resign from Infosys, effective 31 December, the company said.

US stocks rose on Friday, as an unexpectedly strong report on US growth boosted investor confidence that the economy could handle a wind-down of Federal Reserve stimulus.  Gross domestic product grew at a 4.1% annual rate in  the third quarter, the fastest pace in almost two years, and higher than the 3.6 per cent pace reported earlier this month. 

Fed Chairman Ben Bernanke reportedly said that if US job gains continue as expected, the bond purchases will be cut at a "measured" pace through much of next year.


The Dow Jones rose 74.75 points, or 0.46 per cent, to 16,253.83, while the S&P 500 gained 9.81 points, or 0.54 per cent, to 1,819.41 and the Nasdaq Composite added 37.315 points, or 0.92 per cent, to 4,095.449. 

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