>> Equity looks upbeat, oil is on a high and gold prices are falling
>> All eyes are on RBI money policy for normalization signals
>> Govt says HNIs getting the benefit of high tax-free returns through PF, though it was meant for workers
AND
>> Bank of England says negative rates possible
But first, a quick glance at the state of the markets..
Domestic stocks looked set for further gains on Friday, even though analysts are cautioning about the sky high valuations. Nifty futures on the Singapore Exchange signalled more gains. Oil prices have hit a one-year high, gold slipped majorly in the domestic market yesterday and US stock indices hit new highs yet again in overnight trade.
That said, RBI’s money policy will be a key monitorable for the market today. While economists and analysts are not expecting any further rate cut, what the market will be looking at are RBI’s signals on how it plans to manage the bond yields in the face of large government borrowing plans ahead.
The Bank of England created some buzz yesterday when it told banks to start getting ready for negative interest rates, even though the British central bank said that message shouldn’t be taken as a signal that such a policy is imminent.
Back home… the Budget move to tax interest income on provident fund continued to dominate news headlines. Amid sharp criticism, government officials on Thursday said lakhs of high networth individuals have parked large sums in this instruments and are getting the benefit of high tax-free returns although PF was meant for workers. They said some 1.2 lakh subscribers were contributing ‘huge sums’ to their PF account, and in one case the balance is as hugh as Rs 103 crore.
Then, crude oil is making new. Benchmark oil contracts Brent and WTI both hit their highest levels in about a year. The OPEC+ alliance’s announcement to stick to their reduced output policy and sharp drop in US crude stocks are driving oil higher. In India, retail prices of petrol hit a new record high in Delhi on Thursday at Rs 86.65. Diesel is selling at Rs 76.83 a litre
We are also tracking reports that the ministry of corporate affairs is set to launch random electronic scrutiny of corporate filings later this year as it seeks to use technology to improve supervision and compliance
Unilever is planning a bigger India push. Its global chief executive Alan Jope said the company would push harder in key growth markets including India to drive expansion. He told investors on an earnings call that the strategic choice is to accelerate in the US, India and China
Before I wrap up this edition, here is a look at some of the stocks buzzing this morning…
>> UltraTech Cement is tapping the overseas bond market for the first time amid signs of improving demand for construction works.
>> Future Retail told the Delhi High Court on Thursday that the consequences of putting on hold the deal to sell its retail assets to Reliance Retail would be ‘far greater’.
>> RIL has exited another US shale gas venture. The Ambani firm sold its stake in the shale gas assets in the Marcellus shale play of southwestern Pennsylvania in the US to Delaware-based Northern Oil and Gas Inc for $250 million in a cash-and-share deal
>> Tech titan Cognizant Technology Solutions reported the first drop in quarterly as well as annual profit in its history
AND
>> Hindustan Petroleum Corporation more than trebled its December quarter profit, mainly on inventory and foreign exchange gains
Do log in to check out over a dozen stock recommendations for today’s trade from top Dalal Street analysts. That’s it for now. For all the market news through the day, keep tracking ETMarkets.com. Happy investing! Bye-bye
