Key indices may further consolidate tracking positive Asian cues after eking out small gains in previous session. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 15.30 points at the opening bell.
Overseas, Asian stocks rose after US stocks hit record highs overnight. In US, the S&P 500, and Nasdaq Composite notched records yesterday, 8 May 2017, but major US equity indexes finished little-changed as materials shares capped a climb in the energy sector. Trading activity was listless after Emmanuel Macron's closely watched, but expected, presidential election victory in France.
In the latest commentary from Federal Reserve officials, Cleveland Federal Reserve President Loretta Mester said the Fed must be very vigilant against falling behind on needed interest-rate hikes, adding that we could risk a recession if the central bank delayed too long on normalizing rates. Separately, St. Louis Fed President James Bullard said the Fed's benchmark federal-funds rate is close to where a famous mathematical rule recommends it should be.
A measure of fear on Wall Street ended at its lowest level since 1993 yesterday, 8 May 2017, according to FactSet data. The CBOE Volatility Index VIX, -7.57% or VIX, closed at 9.77, off 7.6%, and marking its lowest level since 27 December1993.
Meanwhile, the International Monetary Fund said Asia's economic outlook faces "significant" uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies. The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5% from its previous October forecast of 5.4%, said loose monetary and fiscal policies across most of the region would underpin domestic demand.
Meanwhile, oil prices edged up driven by anticipation that an OPEC-led pledge to cut production would be extended beyond the first half of the year and into 2018, although overall high supply still weighed on markets. In the global commodities markets, Brent for July 2017 settlement was up 3 cents at $ 49.37 a barrel. The contract had risen 24 cents to settle at $49.34 a barrel during the previous trading session.
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Back home, on corporate news front, Bharti Airtel will be watched as company announces Q4 results today, 9 May 2017.
On a consolidated basis, Bharti Infratel's net profit fell 16.95% to Rs 596.60 crore on 13.20% increase in net sales to Rs 1605.30 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 8 May 2017.
Trading for the week had started on a positive note as key indices settled with small gains after a range bound trade yesterday, 8 May 2017. The Sensex rose 67.35 points or 0.23% to settle at 29,926.15, its highest closing level since 4 May 2017.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 542.47 crore yesterday, 8 May 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 663.33 crore yesterday, 8 May 2017, as per provisional data.
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