The world and its market seemed to have been stunned with Bank of Japan which left its monetary policy unchanged. Investors had earlier priced in a strong probability of BOJ unleashing more monetary stimulus.
The world and its market seemed to have been stunned with Bank of Japan which left its monetary policy unchanged. Investors had earlier priced in a strong probability of BOJ unleashing more monetary stimulus. The economy is struggling from abysmally low growth and the need of the hour is more aid from the central bank. Further adjustments on account of F&O expiry further contributed to selling pressure on Dalal Street resulting in the Sensex logging one of its worst performance in recent weeks. HCL Tech results too disappointed the street. Nifty lost 150 pts on last day of April series at 7847, largely driven by banking and metals heavyweights. BankNifty was up another 3.5% expiry to expiry (eoe) and Nifty was up 1% (eoe) basis. Rollovers on Nifty stood at ~67% vs 60% previous expiry (provisional data), which suggests that general bias is on the long side despite the sharp correction.
The outlook is a flat start. Global cues are not helping really. S&P 500 lost 0.92% while Dow Jones was down 1.16%. Nasdaq nosedived by 1.19%. The Indian indices begin May series with build-up seen at 8200 calls and 7700 puts. Perhaps this could be the trading band for the May series. ICICI Bank, IDFC, Marico and Interglobe Aviation results will be in focus today. Indices tend to show a recovery on most Fridays and investors will hope the same happens today.
India Ratings and Research (Ind-Ra) has revised its gross domestic product (GDP) growth forecast for FY17 downwards to 7.7% from its earlier forecast of 7.9%. Despite favourable prospects for agriculture due to an above normal monsoon, industrial recovery is proving to be a drag on the FY17 growth prospect.
During the 12th Plan period, a target of 88,537 MW excluding 30,000 MW of Renewal Energy Source, was fixed for capacity addition. Against this, cumulative capacity addition of 84,990.7 MW has been achieved as on 31.03.2016, says Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha.
RBI has released Minutes of Meeting Of Tech Advisory Committee on Monetary Policy. Members noted that global risks were worrying as global growth is slowing. US growth is likely to be around 2 per cent in 2016 and recovery in European Union and Japan will be muted. China’s real growth is below 7 per cent and is likely to fall below 5 per cent in about 3 years, although there was a view that China’s technocrats would ensure that the targeted growth of 6.5 per cent is achieved, says RBI.
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