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The Indian markets ended the Thursday’s trade slightly in red, as traders opted to book some profit with key indices touching the all time highs. Today, the start is likely to be flat to mildly in green. Traders will be taking support some encouragement with the government’s statement that it has approved foreign direct investment (FDI) proposals worth Rs 24.56 crore, including one from Sterling Commerce Solutions India. Stocks related to textile sector will remain buzzing with exporters’ body FIEO stating huge business opportunities exist in the UAE for domestic textile and apparel sector. Information Technology stocks will continue to remain in focus with Nasscom’s president R Chandrashekhar’s statement that India’s IT industry could see an upturn next year as the process of investments in technology, particularly in the United States, has started to gather momentum. Aviation stocks will get some support with report that the government is developing a comprehensive 25-year master plan for airports in the country to keep pace with air traffic growth. The Centre for Asia Pacific Aviation (CAPA) estimated that India will need an investment of upto $45 billion to create an additional capacity of handling 500-600 million passengers at its airports by 2030. Meanwhile, there will be lots of earnings announcements too will keep the markets in action.
The US markets ended on mostly in green on Thursday after the Labor Department released a report showing an unexpected drop in initial jobless claims in the week ended October 28th. Asian markets have made a mixed start on Friday, as investors digested the release of House Republicans' tax-reform plan and President Trump's nomination of Jerome Powell, Federal Reserve Governor, to be the next head of the central bank.
Back home, Indian equity benchmarks ended the volatile session of trade with marginal losses on Thursday, as traders opted to book some profit with key indices touching the all time high, amid weak global cues. Markets traded cautiously throughout the day, as traders remained on sidelines awaiting the formal nomination of the next head of the central bank. However, losses remained capped as traders took some solace with private report stating that India’s current account deficit (CAD) for this financial year is expected to be around $ 40 billion, or 1.5 per cent of GDP. CAD rose sharply to $ 14.3 billion, 2.4 per cent of GDP, at the end of first quarter of 2017-18. Report highlighted that July-September CAD is expected at about 1.6% of GDP and accordingly, CAD for the first half of this fiscal (April- September) is likely to be around 2% of GDP. Traders also took some comfort with Former Economic Affairs Secretary Shaktikanta Das’ statement that improvement in ease of doing business is extremely relevant and will promote private investment, growth and job creation. Separately, after a record jump of 30 places in the World Bank’s ease of doing business ranking, India is gearing up to leapfrog into the top 50 with around 90 specific reforms lined up for various ministries. The reforms covering seven ministries are to be implemented by May next year with a focus on reducing the number of processes and moving them online. The maximum improvements targeted are in the areas of construction permits (22) and registering property (14), areas where India still has a low rank. Investors took note that the government may nudge cash surplus central public sector enterprises (CPSEs) to invest in the proposed Rs 1.35 lakh crore bond offering to recapitalize public sector banks. Finally, the BSE Sensex lost 27.05 points or 0.08% to 33,573.22, while the CNX Nifty was down by 16.70 points or 0.16% to 10,423.80.

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