Market Morning Brief: What you must know as trading begins on Dalal Street

Good Morning dear Business Today readers!

US Federal Reserve Chair Janet Yellen on Wednesday eased Street concerns about the likely path of US interest rates, yet Wall Street ended flat. Asian markets on Thursday sputtered, while domestic markets also opened lower.

Here is a wrap-up of all important news updates that you may have missed overnight and must know before playing the bourses:

1) Fed sees risks but unlikely to reverse course

The Federal Reserve is unlikely to reverse its plan to raise interest rates further this year, but tighter credit markets, volatile financial markets, and uncertainty over Chinese economic growth have raised risks to the US economy, Fed Chair Janet Yellen told Congress on Wednesday. "The general message she intended to deliver is that additional rate hikes remain the base case, but markets have to stabilise before we see more," an analysts told Reuters.

2) Oil seen falling in days to $25 a barrel

Oil prices slid on Thursday as record US crude inventories and worries about a global economic slowdown weighed on markets, and Goldman Sachs said prices would remain low and volatile until the second half of the year.

While, chartists believe crude prices may be days away from hitting $25 a barrel or even lower as weakening technicals put more pressure on a market already staggering from oversupply.

3) Dollar falls, gold gains

Gold climbed more than 1 percent to its highest in 8-1/2 months after Yellen comments. Spot gold jumped to $1,213 an ounce, its highest since May 22, before paring gains to trade up 0.9 percent at $1,208.27. While, dollar was broadly trading lower.

4) Asian markets

Asian shares extended losses as Yellen's tone of guarded optimism led to an indecisive finish for Wall Street and further weakness for the dollar. While European banks found a moment of stability, a renewed rush to the safety of longer-term US Treasury debt suggested the flight from risk was far from over.

South Korea re-opened from holiday with a 2.5 per cent drop as it caught up with losses elsewhere. Hong Kong's Hang Seng index shed 3.86 per cent, while Japanese markets are closed for a holiday, which might help the mood as Tokyo has been the hardest hit market this week.

5) Crisil on public sector banks

Worsening asset quality will affect the credit profiles of public sector lenders, which may require higher capital infusion from the government, rating agency Crisil said on Wednesday.

"Intensifying asset quality problems at PSBs have the potential to impair their credit risk profiles and necessitate significantly higher capitalisation of PSBs either through government infusion or relaxation of regulatory capital norms," said Crisil.