Market Outlook: BSE Sensex, NSE Nifty expected to remain green on govt’s approval of composite cap for overseas inflows

By: | Updated: July 17, 2015 8:56 AM

BSE Sensex, NSE Nifty are expected to trade higher on Friday tracking positive trend seen in other Asian markets.

market outlook, bse sensex, nse niftyBSE Sensex, NSE Nifty are expected to trade higher on Friday tracking positive trend seen in other Asian markets. (Express Photo)

BSE Sensex, NSE Nifty are expected to trade higher on Friday tracking positive trend seen in other Asian markets. 

The Indian markets went for a huge rally in last session and the benchmarks hit their three months high on Greek development and lower oil prices.

Today, the start is likely to remain in green on sanguine global cues and also due to approval of composite cap for all kinds of overseas inflows including through FDI, FII and NRI routes.

However, there will be some cautiousness too, as though the Asian Development Bank (ADB) retained its India GDP growth projection for 2015-16 at 7.8 percent, it cautioned that delay in reforms relating to land acquisition and GST could hamper growth.

The power sector is likely to see some action, as the Cabinet Committee on Economic Affairs (CCEA) has approved the creation of a transmission system covering seven states at an estimated cost of Rs 8,548.68 crore.

There will be some buzz in the oil stocks, on report that India’s annual fuel demand rose 2.83 percent in June but it slowed compared to the previous month as better monsoon and improved power supply crimped demand for fuels.

The banking stocks too will be in action, as the Reserve Bank of India has allowed banks to factor export receivables on a non-recourse basis, so as to enable exporters to improve their cash flow and meet their working capital requirements.

World Market

Asian stocks nudged up on Friday, helped by a rise in Chinese shares, while the dollar extended gains versus the euro and yen as economic indicators bolstered expectations for a U.S. rate hike by year-end.

MSCI’s broadest index of Asia-Pacific shares outside Japan  was up 0.3 percent. The performance of volatile Chinese stocks was eyed warily – mainland indexes began higher as a futures contract on the CSI300 Index set for delivery by the close of business finally rising above the level of its benchmark. Shanghai shares were up 1.4 percent as of 0221 GMT.

Japan’s Nikkei rose 0.2 percent on a softer yen, while South Korea’s Kospi shed 0.6 percent. Australian shares were little changed.

Wall Street gained overnight, with the Nasdaq up more than 1 percent to a record high after earnings reports from eBay  and Netflix boosted optimism.

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