Nervousness to continue as Fed caution prevails

Indian shares are likely to open on a slightly higher note as the global cues look supportive with SGX Nifty trading 31.50 points higher.

Headlines for the day:

  • Advent to pay $ 300m for 35% stake in Crompton Greaves

  • NMDC gets governments nod to auction Taj Mansingh Hotel in Delhi

  • Madhucon bags EPC road project of Rs397 crore

Indian Indices:

Indian shares are likely to open on a slightly higher note as the global cues look supportive with SGX Nifty trading 31.50 points higher.

Further, on economic front Finance Minister Arun Jaitley told lawmakers on Tuesday that India’s current account deficit will ‘hopefully’ be less than 1% of gross domestic product (GDP) in the fiscal year that begins in April which further buoyed the trading sentiments.

India’s BSE index rose over 1 percent on Tuesday, marking its biggest daily gain in nearly 2-1/2 weeks, tracking higher global shares on hopes weak economic data would prompt the U.S. Federal Reserve to leave options open on the timing of an interest rate hike. The S&P BSE Se nsex and CNX Nifty ended 1.05%-1.04% higher each.

On Tuesday (March 17, 2015), the 30-share Se nsex  surged 299 points to close at 28,736 and the 50-share Nifty gained 90 points to end at 8,723

Global Indices:

Asian stocks dipped and the dollar marked time on Wednesday, with markets fixed on the Federal Reserve’s policy statement due later in the session for clues to when the Fed will hike interest rates.

The Dow and the S&P 500 fell on Tuesday as materials shares declined and nervousness increased ahead of a Federal Reserve statement, while the Nasdaq ended higher.

European shares retreated from a 7-1/2-year high on Tuesday, with PSA Peugeot Citroen leading automakers lower after the release of car sales data and a disappointing German economic sentiment survey.