News and Impact
Expect market to open on a flat note on account of global cues. US Dow Jones declined half percent as investors took a cautious approach to a week full of central bank activity. Market expectation that the US Fed may delay hike in interest rate after announced strong Job data on last Friday. Nasdaq Index slipped nearly 1% on account of 2% decline in Apple share yesterday. Elsewhere, oil gained amid heightened geopolitical risks in the Middle East. Emerging-market shares were dragged down by the Asia sell-off.
The main focus for markets this week looks to be Fed Chairman Jerome Powell, who will testify in Congress just days after the latest payroll report signaled that the American economy remains on track.
Asian markets are witnessing mixed bag. Nikkei gained marginally while Hong Kong, Taiwan and China Index are trading flat. SGX Nifty is flat to positive.
Expect positive for PSU Banks – 10-Year G-Sec Yield fell to 2-year low at 6.56% after the government announced $10bn global debt sale. Fall in 10-Year Yield will be positive for PSU banks like SBI, BoB, Canara Banks, BoI.
Sentiment has been dampen after a budgetary tax on foreign investors, poor growth forecast by Bajaj Finance and Titan on account of slowdown economy. Traders apply caution and buy on dips in the market.