5 Points In The Union Budget To Decide The Course Of Market.

5 Points In The Union Budget To Decide The Course Of Market.

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  • Capital Gain Tax
  • Corporate Taxes and individual taxes need to be reduce
  • Banking Cash Transaction Tax likely to be introduced
  • Increase in agriculture Subsidies
  • Increase in service tax & Excise reduction in Crude oil

India’s benchmark index Nifty yesterday fell by 80 points from the day high of 8632 and made low of 8552, and closed at 8561 almost near its day low. Bank nifty also showed weakness throughout the day and fell by 70 points from its previous day close of 19585.

Small cap index saw selling pressure as the index lost 90 points from its previous day close of 6392 to close at 6302. Small Cap Index closed below its 3 day low thereby showing signs of further weakness.

FII’s have sold 532 crore in Cash Segment ahead of Budget on Tuesday after continuous buying of 3 days.

Important results to be announced today are apollo tyre, tata global, eicher motors, cummins india.

Nifty Future is opening at 8609 as per SGX Nifty at 8:50 am IST,almost 25 points above its previous close of 8584.

GOLD:

Gold steady ahead of U.S. Fed interest rate decision.

Gold held firm on Wednesday after hitting a one-week high in the previous session, as traders awaited a decision on interest rates by the U.S. Federal Reserve, which is expected to keep policy on hold.

FUNDAMENTALS:

  • Spot gold was little changed at $1,210.79 an ounce by 0054 GMT. U.S. gold futures climbed 0.1 percent to $1,209.70.
  • Spot gold rose over 5 percent in January, its best month since June 2016.
  • The U.S. Federal Reserve is expected to keep interest rates unchanged on Wednesday in its first policy decision since President Donald Trump took office, as the central bank awaits greater clarity on his economic policies.
  • The dollar suffered its worst January in three decades after President Trump complained that every “other country lives on devaluation.” 
  • The comments intensified expectations that the new U.S. administration was making moves to talk down the greenback just hours after Trump’s top trade adviser, Peter Navarro, told the Financial Times that Germany is using a “grossly undervalued” euro to gain advantage over the United States and its own European Union partners.
  • S. consumer confidence retreated from a 15-year high in January, likely as some of the election euphoria fizzled, but households remained upbeat about the labor market, suggesting that the economy would continue to grow this year.
  • Some of Wall Street’s largest fund managers have taken a contrarian bet on gold, wagering that U.S. President Donald Trump’s governing style and upcoming elections in Europe will combine to create more stock market volatility and boost the prices of a metal long seen as a safe haven.
  • S. private equity firm Orion Mine Finance Group is in talks to sell a portfolio of 87 mining royalty, streaming and offtake assets, Orion portfolio manager Douglas Silver said on Tuesday.
  • Britain’s economy now looks set to slow only slightly in 2017 after its resilient response to last year’s Brexit vote, but growth is still likely to be a lot weaker than if the country had decided to stay in the European Union, a think tank said.
  • Inflation in the euro zone has risen to just below the European Central Bank’s target, economic growth is accelerating at greater speed than in the United States, and unemployment has hit a more than seven-year low.

CRUDE OIL:

 OPEC achieves 82 percent of pledged oil output cut in January – Reuters survey. 

  • OPEC’s oil output is set to fall by more than 1 million barrels per day (bpd) this month, a Reuters survey found on Tuesday, pointing to a strong start by the exporter group in implementing its first supply cut deal in eight years.
  • The Organization of the Petroleum Exporting Countries agreed to cut its output by about 1.2 million bpd from Jan. 1 to prop up oil prices and reduce a supply glut. Supply from the 11 OPEC members with production targets under the deal has averaged 30.01 million bpd, according to the survey based on shipping data and information from industry sources, down from 31.17 million bpd in December.
  • Compared with the levels that the countries agreed to make the reductions from — in most cases their October output — OPEC members have cut production by 958,000 bpd of the pledged 1.164 million bpd, equating to 82 percent compliance.
  • Compliance of 80 percent comfortably exceeds the initial 60 percent achieved when the previous cuts deal was implemented in 2009, and the survey adds to indications that adherence so far has been high.
  • “This is very high, a good number,” an OPEC source said of the January compliance estimate. “I hope it continues.” Oil edged above $55 a barrel on Tuesday.
  • The cuts agreed by OPEC, Russia and other independent producers has helped to lift prices from a 12-year low near $27 a year ago.
  • The January drop in OPEC output has been offset slightly by higher supply from Libya and Nigeria, which are both exempt from the OPEC agreement because of output losses caused by conflict.
  • Saudi Arabia has reduced output to less than 10 million bpd in January, industry sources told Reuters, implementing a bigger cut than it had agreed to set a good example on compliance.
  • Iran, which was allowed to raise output under the OPEC deal because sanctions had crimped past supply, pumped an additional 20,000 bpd. OPEC announced a production target of 32.5 million bpd at its Nov. 30 meeting, which was based on low figures for Libya and Nigeria and included Indonesia, which has since left the group.
  • Combined output in January from all members is about 520,000 bpd above the target, adjusted to remove Indonesia, the survey showed.
  • The Reuters survey is based on shipping data provided by external sources, Thomson Reuters flows data and information provided by sources at oil companies, OPEC and consulting firms.

 

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