The benchmark BSE Sensex and NSE Nifty is likely to be in green tailing cues from the regional peers after Fed left interest rates remained unchanged, though the Fed has kept traders guessing on the precise timing for policy tightening.
Traders will be getting some support with a statement of World Bank official that India has the potential to become a multi-trillion dollar economy with a per capita income of about $40,000 by 2050 if it manages to grow at seven percent annually for the next 30-35 years.
Also, as the Union Cabinet has approved amendments as proposed by Rajya Sabha Select Panel on GST Constitution Amendment Bill.
There will be some buzz in the infra stocks, as the Union Cabinet approved creation of a Rs 20,000-crore National Investment and Infrastructure Fund (NIIF), a sort of sovereign fund, for development of infrastructure projects, including the stalled ones.
The fund could also consider funding nationally important projects in the manufacturing sector. There will be lots of result related reaction based on the earnings announcements of some major companies.
Asian shares were firm on Thursday after the U.S. Federal Reserve said it saw the economy and jobs continuing to strengthen, helping lift the dollar as traders bet that higher U.S. interest rates were around the corner.
Japan’s Nikkei rose 0.8 percent while Australian shares tacked on 0.3 percent and South Korean shares gained 0.2 percent.
Dollar-denominated MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat.
On Wall Street, U.S. stocks rose broadly on the Fed’s optimism and strong corporate earnings, with S&P 500 rising 0.7 percent to 2,108.57.
The Fed said in its statement after a policy-setting meeting on Wednesday the U.S. economy and job market continue to strengthen.