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Markets are likely to make a gap up opening as the Federal Reserve yesterday moved a step closer to hiking rates for the first time since 2006, but downgraded its economic growth and inflation projections, signaling it is in no rush to push borrowing costs to more normal levels.
The US central bank removed a reference to being "patient" on rates from its policy statement, opening the door wider for a hike in the next couple of months while sounding a cautious note on the health of the economic recovery.
Fed officials also slashed their median estimate for the federal funds rate - the key overnight lending rate - to 0.625% for the end of 2015 from the 1.125% estimate in December.
"Just because we removed the word 'patient' from the statement doesn't mean we're going to be impatient," Fed Chair Janet Yellen said in a press conference after Wednesday's statement.
The dollar nursed punishing losses in Asia on Thursday after investors priced in a later start and a slower pace for future US rate rises, slashing Treasury yields and firing up Wall Street stocks.
The formerly friendless euro found itself up at $1.0835, having jumped 2.8% on Wednesday, while oil held gains of 5% as the dollar retreat lifted commodities.
Early signs were also promising for regional stocks with MSCI's broadest index of Asia-Pacific shares outside Japan.
The early indicator, SGX Nifty has surged 84 points at 8,774 levels.
Further, India is poised to grow 7.7% this year and 8% in 2016 to become the "fastest growing major economy", according to think-tank OECD. In its interim economic assessment report released today, OECD said that over the next two years India is set to grow faster than China, where growth is slowing towards the official target of around 7%.
STOCKS TO WATCH
HCL Technologies and Tech Mahindra will be in focus as both the companies have fixed March 20, 2015 as record date for the purpose of ascertaining the entitlement of the members for the issue of bonus shares in the ratio of 1:1 i.e. one equity share for every one equity share held.
Tech Mahindra also fixed the said record date for subdivision of the shares in the ratio of 2:1 i.e. two equity shares of Rs 5 each for every one equity share of Rs 10 each held.
Deepak Fertilisers and Mangalore Chemicals and Fertilizers (MCF) will see some action today as Deepak Fertilisers might sell its stake in MCF. The open offer from the Saroj Poddar-promoted Zuari group has got an approval from the Securities and Exchange Board of India (Sebi).
Country's largest private sector lender ICICI Bank today said it has sold its profit making Russian subsidiary ICICI Bank Eurasia Limited Liability Company (IBEL) to Sovcombank -- marking its exit from Russia.
Banks owed nearly Rs 37,000 crores by Bhushan Steel Ltd could extend the maturity of the steelmaker's debt under a Reserve Bank of India scheme that would spare the lenders from booking hefty provisions, bankers said.
