Things You Need To Know Before Today's Opening

Dovish comments from Federal Reserve Chairman had equities across the globe cheering last week. On expressing that the timeline and extent of asset purchases in the US is not set in stone, and that the Fed would be responsive towards macroeconomic data, it became clear that it is too early to firmly judge when the central bank will slow down its liquidity injection programme.

While this turned positive for global markets, the Indian markets continued to be pressured by unfavourable pressure on the currency front and steps taken towards the easing of these pressures. However, the result season started and some impressive numbers were announced thus providing substantial support to the markets.

What are the cues that are expected to affect the market today?

1. The RBI said the country’s foreign exchange reserves rose by USD 21.1 million to USD 280.19 billion from the previous reporting week.
2. The rupee ended the day on Friday at Rs 59.35 per share, showing some easing. The dollar saw a pullback against major currencies amid the Group of 20 summit in Moscow and ahead of elections in Japan.
3. Asian stocks have been positive as the ruling party in Japan won a majority in the upper house elections giving Prime Minister Shinzo Abe’s party control in both houses.
4. European stocks ended the day positive because of comments from Ben Bernanke, closing at a seven-week high.
5. Reliance Industries posted a 4.5% YoY decline in revenues because of lower output from the KG-D6 basin. However its net profits increased by 19% YoY. Its gross refining margins stood at USD 8.4/bbl versus USD 7.6/bbl against the corresponding period in the previous year.

Global sentiment seems positive and the currency seems to be in favour because of some weakness seen in the dollar. Moreover, the domestic sentiment has seen a boost as the results season saw a good start. However, there may be some correction in the markets which investors need to keep in mind.