Wednesday, January 31, 2018

Pre-Session: Market may extend losses on negative global cues
31-Jan-18: Overseas, Asian shares were trading lower after US stocks sold off for a second day. US stocks declined on Tuesday, as heavy losses in health-care and energy shares weighed on the main indexes. Climbing US bond yields, which imply a rise in borrowing costs, also put pressure on stocks.

US Federal Reserve's Federal Open Market Committee (FOMC) commenced its two-day meeting on monetary policy yesterday, 30 January 2018, with a policy decision due later in the global day today, 31 January 2018. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 105.56 crore yesterday, 30 January 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 281.65 crore yesterday, 30 January 2018, as per provisional data.

Among corporate news, Mahindra & Mahindra (M&M) announced its foray into the sprayers business under the aegis of its Farm Equipment Sector through the acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments, a Maharashtra-based AgTech company (MITRA). The announcement was made after market hours yesterday, 30 January 2018.

Under the transaction, which is expected to close by February 2018, M&M will acquire a 26% equity stake in MITRA through a fresh infusion of capital into the company. The association with Mahindra will help accelerate the growth of MITRA, which designs and manufactures proprietary sprayers for horticulture crops.

ICICI Bank, L&T, NTPC and Vedanta will announce Q3 results today, 31 January 2018.

Key benchmark indices registered modest losses yesterday, 30 January 2018. The barometer index, the S&P BSE Sensex, lost 249.52 points or 0.69% to 36,033.73. The Nifty 50 index lost 80.75 points or 0.73% to 11,049.65. Negative global cues weighed on the sentiment. The Sensex and the Nifty, both, hit almost 1-week closing low.

The next major trigger for the market is Union Budget 2018-2019, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.

The Budget Session of the parliament began on 29 January 2018. The first phase of the budget session of the parliament is being held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.

The Economic Survey 2017-18 was tabled in Parliament on 29 January 2018. The survey estimated that India's economy should grow between 7% and 7.5% in the 2018/19 (April-March) with exports and private investment set to rebound. The survey estimated that gross domestic product will have grown 6.75% in the current fiscal year ending in March 2018.

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