Expect some profit booking in the market

S&P BSE Sensex remained positive in the ninth consecutive session managed to break previous all time high levels. The S&P BSE Sensex rallied over 80 points in trade on Tuesday to hit its fresh record high of 26,960.52, while the Nifty too registered a fresh life-high of 8,057.30 on yesterday. IT stocks led gains after upbeat US economic data and metal stocks advanced after better than expected economic data from China. Healthy buying was observed in paint makers were in demand on expectations of rise in sales of decorative paints during the upcoming festival season. Selling pressure was seen in FMCG and power stocks.

L&T gained after commissioning the world's largest solar photovoltaic plant in Amritsar, Punjab. ONGC’s overseas subsidiary signed MoU with a major oil producing company in Argentina. ONGC Videsh and YPF S.A., the major oil producing company of Argentina have entered into a memorandum of understanding (MoU) on 1 September 2014 to cooperate in the hydrocarbon sector. Under the MoU, the two companies will analyse the opportunities for cooperation in upstream sector in Argentina, India and third countries. The MoU also envisages collaboration in the areas of research & development and human resources.

Indian banks, which are facing poor credit off-take by India Inc, may face fresh competition from foreign lenders. The Reserve Bank of India (RBI) on Wednesday allowed non-resident foreign banks to offer debt to local companies in Indian rupees.

Globally, US stocks The U.S. stock market is closing mostly lower, pulled down by a fall in Apple and other technology companies. The S&P 500 closed down by 0.08%. The Dow Jones Industrial Average closed up by 0.1%. Nasdaq Composite Index dropped 0.6%. As U.S. trading got under way, stocks initially advanced. But the market was unable to hold those gains. On the economic front, orders for goods produced in U.S. factories jumped in July, as expected, due to a surge in contracts for commercial aircraft, the Commerce Department said Wednesday.

European markets rallied on yesterday after Russian President Vladimir Putin comment that he and Ukrainian President Petro Poroshenko had agreed to the outlines of a cease-fire between Ukrainian forces and pro-Russian rebels fighting in eastern Ukraine. The Stoxx Europe 600 Index gained 0.6%, and Germany's DAX index rose 1.3%. Both indexes have advanced in recent sessions, with the DAX up four straight days. But they remain below their summer peaks reached in July. The Stoxx 600 is 1.4% below its 2014 high, and the DAX is 4% off its record.

While the ECB is unlikely to take action on Thursday, any hint from ECB president Mario Draghi that the bank is readying such a programme could drive down the euro. In addition to the ECB, the Bank of Japan and the Bank of England will have a policy meeting, though none of them is expected to change policy settings.

Asian equity indices open with cautious in today’s morning as investors awaited central bank decisions in Japan and Europe. Japan's benchmark Nikkei index took a breather (down 0.08%) after ending at seven-month highs in the past two sessions, snapping a three-day winning streak. South Korea's benchmark Kospi index rebounded (gains 0.3%) from Wednesday's three-week closing low thanks to a 2% jump in Samsung Electronics after the firm unveiled two new devices in New York. China's benchmark Shanghai Composite managed to hit another 14-month peak, up for the fifth straight day, while Hong Kong stocks dipped 0.2% following Wednesday's 2% rally.

A SGX Nifty Index future is also trading in red with decline by 0.35% to 8,116.50. We expect Indian stock markets are likely to open in negative territory on account of weakness in global market.