In line with market
expectations, Global central banks started to hint towards possible monetary
easing to support financial markets (which are spooked by Corona Virus) economy.
US FED released a rare statement – stressing that FED will act appropriately to
support economy. Similarly, Bank of Japan also issued a statement – Bank of
Japan will strive to provide ample liquidity through market operations and
asset purchases. Consequently, USD/JPY rebounded to 108.20 from 107.10 levels, Gold
fell more than 3% to 1580 levels and Asian equities are trading in green with
Shanghai composite trading 3% positive.
On domestic
front, India’s GDP grew in line with expectation by 4.7% in December quarter.
CSO has also revised September quarter growth to 5.1% from earlier estimates of
4.5%. GDP growth in current quarter likely to be hampered by global spread of
Corona virus and seasonal decline in government spending. GST tax collection
for Feb stand at 1.05 lakh cr against target of 1.15 lakh cr. Although, GST
collection missed the target but a reading above 1 Lakh cr should be taken as a
good sign.
Domestic equity markets are trading in green, tracking their Asian peers. 10 year G-Sec yield fell to 6.33% tracking global bond sentiments. On currency front, USDINR pair is trading near 72.20. USDINR pair has immediate support at 72.05 levels and first resistance at 72.25 levels and second resistance at 72.40 levels. Range for day seen as 72.00-72.40
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