Market Likely To Open In Green

During the last week we saw some buying at lower levels in Indian equity market after three consecutive weeks of downfall and a loss of nearly 7 per cent in this period. As a result, the Sensex gained 1% while the Nifty rose 1.22%, recording their best weekly performance since the week ended on Oct. 9. While broader markets outperformed the Sensex with the BSE Mid-Cap index rose 204.93 points or 1.92% to settle at 10,858.41. The BSE Small-Cap index rose 242.27 points or 2.17% to settle at 11,367.71.

During the last week, CCEA approved a 10% stake sale in Coal India. IPO plan for Cochin Shipyard and interest subsidy scheme for exporters were also announced. Road ministry got approval to revive 34 stalled projects. Direct payment of a production subsidy to the farmers was also announced. Direct subsidy to farmers for sugarcane sold to sugar mill was also among the sweeteners announced.

U.S. stocks closed higher Friday and logged its best weekly gain in nearly a year, helped by gains in retail stocks, as investors looked to central banker comments on the trajectory of monetary policy. The S&P 500 rose 7.93 points, or 0.4%, to 2,089.17, notching a weekly gain of 3.3%. The Dow Jones Industrial Average rose 91.06 points, or 0.5%, to 17,823.81 with a weekly gain of 3.4. Meanwhile, the Nasdaq Composite Index tacked on 31.28 points, or 0.6%, to 5,106.78. The index gained 3.6% this week, its largest weekly gain since July 17.

European stocks edged higher Friday, locking in a weekly advance after comments from central bankers in the euro zone for unveil fresh stimulus measures at its Dec. 3 policy meeting and the U.S. central banker comments on the trajectory of monetary policy. The Stoxx Europe 600 closed up 0.2% at 381.79 and logged at 3.3% rise for the week, its best weekly performance in a month. France’s CAC 40 on Friday slipped 0.1% to 4,910.97, but closed the week 2.1% higher. Germany’s DAX 30 on Friday rose 0.3% to 11,119.83, benefitting in part from the pullback in the euro. The U.K’s FTSE 100 edged up 0.1% to 6,334.63 while Spain’s IBEX 35 shed 0.6% to end at 10,290.30.

Asian shares got off to a slow start Monday as a holiday in Japan sapped liquidity, while following a rally on Wall Street last week as investors continue to look out for comments from central bankers on the trajectory of U.S. monetary policy. The Shanghai Composite traded 14 points, or 0.38% on Monday, after briefly dipping into red at the open. South Korea’s Kospi index continued to gain, trading 14 points, or 0.73%, higher at 2,005. In a volatile morning session, the ASX 200 was back in positive territory, gaining 16 points, or 0.32 percent, to 5,275 after opening in red.

A SGX Nifty 50 Index future for November delivery was up 27 points at 7,888. Indian market is likely to open in green. However going forward we believe market may become volatile F&O expiry during the week. With the Winter Session of the Parliament set to begin on November 26, investors will also keenly watch the fate of important bills like the Goods and Services Tax(GST).