Global cues point out to a positive opening for the Indian market. The US markets settled higher on Friday on hopes that the Federal Reserve will provide further stimulus to boost the sagging economy, as the jobs market witnessed a cut of 95,000 jobs in September. Asian markets were on the US Fed’s possible move to initiate fresh stimulus to boost the economy. The SGX Nifty was up 42.50 points at 6,184.50 against its previous close of 6,142.
Markets in Asia were mostly in the positive zone this morning on hopes that the US Fed will take more steps to boost the economy of the world’s largest economy. Reports that Moody's Investors Service is reviewing China's government bond rating for a possible upgrade boosted investor sentiments in China and Hong Kong.
The Shanghai Composite was up 1.71%, Hang Seng was up 1.05%, KLSE Composite was up 0.29%, Straits Times was up 0.46% and Seoul Composite was up 0.34%. On the other hand, Nikkei 225 was down 0.99% and Taiwan Composite was down 0.02%. The SGX Nifty was up 42.50 points at 6,184.50 against its previous close of 6,142.
The local market ended its five-week winning streak, ending in the red for the week ended 8th October on all-round selling pressure and tepid cues from the global and domestic arena. Nervousness ahead of the domestic earnings season, which kicks off next week, also kept investors on the sidelines. However, inflows from foreign investors limited the losses. Finally, the key benchmarks ended almost 1% lower with the Sensex losing 194.78 points and the Nifty shedding 39.95 points for the week.
Domestic triggers this week include the industrial output figures to be released on Tuesday, monthly inflation and weekly food inflation data on Thursday and the start of the earnings season on Friday.
The US markets ended in the positive zone on hopes that the Federal Reserve will provide further stimulus to boost the sagging economy, as the jobs market witnessed a more-than-expected job cuts in September According to a monthly government report released early Friday, a total of 95,000 jobs were slashed last month, marking the fourth consecutive decline. Private employers added 64,000 workers last month, short of the 75,000 economists expected. Though, the unemployment rate held steady at 9.6%, it has now breached 9.5% for 14 straight months, the longest stretch since the 1930s.
The Dow gained 57.90 points (0.53%) to 11,006. The S&P 500 index gained 7.09 points (0.61%) to 1,165. The Nasdaq gained 18.24 points (0.77%) to 2,402.
The two-day meeting of the International Monetary Fund and the World Bank concluded without finding any resolution to the currency issue, which is expected to reverberate at Group of Twenty (G-20) meet next month in Seoul.
The currency issue was the most discussed topic at the meet after the governance reform. IMF managing director Dominique Strauss-Kahn said one of the reasons for currency dominating the meet is that global economic recovery is so uneven. He said some parts of the world are having high growth, while others have low growth and large capital is flowing to regions which have growth.
Indian finance minister Pranab Mukherjee voiced his opposition to any move towards a currency war, and called for “engaging” the concerned countries.
Meanwhile, amid Indian rupee's rising to two-year high last week, Reserve Bank of India (RBI) on Sunday said it may intervene in the foreign exchange market if foreign institutional investor (FII) inflows are volatile.
FII have pumped a record $21 billion (Rs96,000 crore) so far this year into Indian stock markets.
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