Investors are likely to turn cautious in Friday’s session ahead of the Union Budget tomorrow. Besides, they will continue to react to the quarterly corporate results and also await more news on the coronavirus front, which has tempered sentiment across the globe. In the latest development, the World Health Organisation has declared an international emergency over the deadly virus from China.
The government will today release the Economic Survey for 2019-20 which will detail the economic performance in the year amid concerns over a deepening slowdown. The report will analyse trends across sectors and investors will keenly track the document for clues about the Budget’s contents.
Market participants will first react to the corporate results announced after market hours yesterday. Tata Motors reported a net profit of Rs 1,756 crore in the December quarter, against a net loss of Rs 26,961 crore in the corresponding period last year. Today, a total of 109 companies including ITC, State Bank of India, and Tech Mahindra, are scheduled to announce their quarterly results.
Rupee’s trajectory, oil price movement, and foreign fund flow continue to be on investors’ radar.
Globally, the United Kingdom will formally leave the European Union today but it will immediately enter an 11-month transition period. Indian companies that have a significant presence in the UK are preparing for Britain’s exit by cutting jobs and relocating plants and staff.
In the US, the Dow finished up 0.43 per cent, while the S&P 500 gained 0.3 per cent. The Nasdaq inched up 0.26 per cent. Asian share markets inched a tad higher at the end of a punishing week. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1 per cent. Japan’s Nikkei added 0.9 per cent. The SGX Nifty is indicating a green start for Sensex and Nifty today.
In commodities, oil hit its lowest in three months as the global spread of the coronavirus threatened to curb demand for fuel.
Back home, benchmark indices corrected sharply yesterday amid weak global cues. Sensex closed 285 points lower at 40,914, while Nifty settled with a loss of 94 points down at 12,036.
And, in the end, here’s a stock idea by Prabhudas Lilladher which recommends buying Bajaj Auto for the target of Rs 3350 to Rs 3400 with stop-loss at Rs 3030
Source: Maalaimalar
