Five developments that are shaping the market today
Goods and Services Tax (GST) Bill has entered the last mile. Dalal Street also awaits the next batch of earnings from companies such as Tech Mahindra, InterGlobe Aviation and Tata Communications this week.
- Aug 1, 2016,
- Updated Aug 1, 2016 9:56 AM IST
Look around! No wonders, July recorded a rain surplus this year, a good news for market. Goods and Services Tax (GST) Bill has also entered the last mile. Dalal Street also awaits the next batch of earnings from companies such as Tech Mahindra, InterGlobe Aviation and Tata Communications this week. Over the weekend, one of the US Federal Reserve's most influential policymakers warned it is premature to rule out an interest-rate increase this year, but if you believe market analysts in Japan, 'helicopter money' may not be that far.
Below is the wrap-up of this and many more triggers that will shape the market in Monday's trade:
1) Monsoon blesses Dalal Street
The month of July has ended with a rain surplus of 7 per cent, exactly what Indian Metereological Deratment (IMD) had predicted, leading to higher than normal sowing activity across the country.
2) No, US economy hasn't recovered yet!
US gross domestic product increased at a 1.2 per cent annual rate in the April-June period, less than a half of a 2.6 per cent growth rate economists had expected. The slowdown in world's largest economy doesn't bode well for global economies, or for that matter, global equities at large.
3) September rate hike unlikely, but ruling out any in 2016 premature
US economic growth data reduced expectations of a rate hike by the US Federal Reserve in the next few months, but New York Fed President William Dudley said it was "premature" to rule out a policy tightening in 2016. He added that negative shocks were more likely than positive ones due to the unknown fallout from Britain's vote to leave the European Union, and a strong dollar.
4) Helicopter money may soon take flight
Bank of Japan central banker Haruhiko Kuroda disappointed market hopes on Friday that it might increase its heavy buying of government debt, but expectations are ripe he could adopt some form of "helicopter money", to assist Prime Minister Shinzo Abe to kickstart growth, who last week announced a fiscal spending package worth more than 28 trillion yen ($275 billion).
5) Asian shares hit a one-year high
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.1 per cent, hitting its highest level in about a year. Japan's Nikkei and Hong Kong's Hang Seng index were ruling in positive territory, but China's Shanghai Composite slumped over 1 per cent even as its Caixin/Markit Manufacturing Purchasing Managers' index (PMI) rose to a 1 1/2-year high of 50.6, beating market expectations.
Look around! No wonders, July recorded a rain surplus this year, a good news for market. Goods and Services Tax (GST) Bill has also entered the last mile. Dalal Street also awaits the next batch of earnings from companies such as Tech Mahindra, InterGlobe Aviation and Tata Communications this week. Over the weekend, one of the US Federal Reserve's most influential policymakers warned it is premature to rule out an interest-rate increase this year, but if you believe market analysts in Japan, 'helicopter money' may not be that far.
Below is the wrap-up of this and many more triggers that will shape the market in Monday's trade:
1) Monsoon blesses Dalal Street
The month of July has ended with a rain surplus of 7 per cent, exactly what Indian Metereological Deratment (IMD) had predicted, leading to higher than normal sowing activity across the country.
2) No, US economy hasn't recovered yet!
US gross domestic product increased at a 1.2 per cent annual rate in the April-June period, less than a half of a 2.6 per cent growth rate economists had expected. The slowdown in world's largest economy doesn't bode well for global economies, or for that matter, global equities at large.
3) September rate hike unlikely, but ruling out any in 2016 premature
US economic growth data reduced expectations of a rate hike by the US Federal Reserve in the next few months, but New York Fed President William Dudley said it was "premature" to rule out a policy tightening in 2016. He added that negative shocks were more likely than positive ones due to the unknown fallout from Britain's vote to leave the European Union, and a strong dollar.
4) Helicopter money may soon take flight
Bank of Japan central banker Haruhiko Kuroda disappointed market hopes on Friday that it might increase its heavy buying of government debt, but expectations are ripe he could adopt some form of "helicopter money", to assist Prime Minister Shinzo Abe to kickstart growth, who last week announced a fiscal spending package worth more than 28 trillion yen ($275 billion).
5) Asian shares hit a one-year high
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.1 per cent, hitting its highest level in about a year. Japan's Nikkei and Hong Kong's Hang Seng index were ruling in positive territory, but China's Shanghai Composite slumped over 1 per cent even as its Caixin/Markit Manufacturing Purchasing Managers' index (PMI) rose to a 1 1/2-year high of 50.6, beating market expectations.