Kites to fly on DStreet on RBI rate cut; SGX Nifty breaches 8500

Indian shares are likely to open on a positive note as the domestic and global cues look supportive. SGX Nifty is trading 174 points higher.

A Group results to be announced on January 15, 2015:

Bajaj Holdings & Investments, Federal Bank, TCS, Cyient, Bajaj Auto, DB Corp

Headlines for the day:

  • Network18 appoints AP Parigi as Group CEO
  • Vedanta chief Agarwal expects to buy HZL, BALCO stakes soon
  • Govt likely to sell 10% stake in IOC this fiscal

Indian Indices:

Indian shares are likely to open on a positive note as the domestic and global cues look supportive. SGX Nifty is trading 174 points higher.

RBI cuts repo rate by 25 bps which is positive for banking sector (SBI, ICICI, PNB, BOB etc) and NBFCs ( Bajaj Finance , LIC Housing etc)

The RBI has reduced repo rate by 25 bps to 7.75% (from 8 % earlier) with immediate effect. RBI also indicated that it is open for further easing in future as inflation may be below 6% levels in Jan 2016. This is significant positive for banking sector (SBI, ICICI, PNB, BOB etc) and NBFCs (Bajaj Finance , LIC Housing etc). It is also positive for other interest sensitive sector  ( consumer discretionary , automobile and Real Estate sector).

Indian shares fell for a second straight session on Wednesday, led by declines in ITC Ltd on worries the government may ban sale of loose cigarettes, while metal stocks slumped, tracking falls in commodities on global growth concerns. The S&P BSE Se nsex and CNX Nifty ended 0.29% and 0.26% lower each.

On Wednesday (January 14, 2014), the S&P BSE Se nsex ended down 159 points at 27,425 and the 50-share Nifty closed down 24 points at 8,299.

Global Indices:

Asian stocks slipped on Thursday after weak U.S. data compounded worries over plunging copper prices and the health of the world economy, while a bounce in crude oil failed to calm anxiety over a supply glut that has seen prices collapse in recent months.

U.S. stocks fell for a fourth day on Wednesday as a World Bank forecast fuelled concerns about global economic weakness and copper prices sank, although a late-day rebound in energy shares left the market well off its lows after a volatile session.

European shares sank on Wednesday in big volumes, knocked down by worries over the pace of global growth that were fuelled by grim U.S. retail sales data and cuts to the World Bank’s economic forecasts.