Opening Bell : Markets likely to make gap-up opening amid optimism over India-US trade deal
Indian equity markets are likely to make gap-up opening on Friday, amid positive global cues. Traders are likely to take support with Union Minister Piyush Goyal stating that the ongoing trade talks between Indian and U.S. officials are progressing well. However, some cautiousness may come from foreign portfolio investors, who recorded net sales of equities worth Rs 2,020.94 crore on Thursday.
Some of the key factors to be watched:
India, US conclude 2-day trade talks: Commerce ministry reportedly said that India and the US have concluded two-day talks with both sides exchanging views on trade-related issues, including the ongoing negotiations for a mutually beneficial bilateral trade agreement. Both sides agreed to continue the current purposeful and positive engagements.
Indian envoy to Canada meets senior officials, discusses ways to enhance bilateral ties: Indian High Commissioner to Canada has met Canadian Speaker of the House of Commons and discussed advancing parliamentary ties between both the countries along with productive exchange on shared democratic values and future collaboration.
Goyal confident of overcoming issues to finalise free trade pact with EU: Union Commerce Minister Piyush Goyal has exuded confidence in overcoming issues to finalise a free trade agreement with the European Union (EU).
India's corporate bond market poise to exceed Rs 100 trillion by 2030: Niti Aayog in a report said that India’s corporate bond market has the potential to exceed Rs 100-120 trillion by 2030, provided some deeper structural reforms and institutional capacity-building are undertaken.
India must overcome bottlenecks to raise quantity quality of workforce participation: An NCAER report stated that India needs to overcome bottlenecks to increase both quality and quantity of workforce participation and labour productivity. The report underlines the role of skilling and small enterprises as key drivers of job creation in the country.
On the global front: The US markets ended higher on Wednesday, after Fed lowered rates for the third time this year and signalled a more gradual path of easing in the months ahead. Asian markets are trading mostly in green on Friday, tracking gains on Wall Street overnight.
Back home, Indian equity benchmarks snapped a three-day losing streak and ended with healthy gains on Thursday, following buying in Metal and Auto stocks. Investors reacted positively to the U.S. Federal Reserve’s latest rate cut. However, concerns around the Indian rupee’s slide to a fresh record low and lingering uncertainty over India-U.S. trade negotiations capped the upside. Finally, the BSE Sensex rose 426.86 points or 0.51% to 84,818.13 and the CNX Nifty was up by 140.55 points or 0.55% to 25,898.55.
Some of the important factors in trade:
Negotiations for FTAs with Oman, New Zealand in last phase: Commerce and Industry Minister Piyush Goyal has said that negotiations for Free Trade Agreements (FTAs) with Oman and New Zealand are in their last phase, and both are expected to be concluded soon.
India should remain extremely cautious on giving duty concessions to US on agricultural crops: Think tank -- the Global Trade Research Initiative (GTRI) has said that India should remain extremely cautious about giving duty concessions to the US on agricultural crops or genetically modified products, and should insist on a drastic cut in the high tariffs.
Govt meets target to reduce logistics cost to 9% of GDP: Union transport minister Nitin Gadkari has said that the government has met the target to reduce logistics cost to 9 per cent of Gross Domestic Product (GDP) from as high as 16 per cent due to good roads.
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