Mumbai: Indian market Closed on a positive note on Friday on hopes of de-escalation of border tension with Pakistan. Nifty closed above the 10,850 level as private banks led the gains. For the week key indices Sensex gained 0.5 per cent, Nifty 50 closed up 0.6 per cent whereas Nifty Bank rose 0.6 per cent.
Zee Ent 8.7 per cent, Coal India 8.4 per cent, Yes Bank 7 per cent, Ultratech 6.8 per cent, UPL 5 per cent and GAIL 5 per cent were among nifty gainers whereas Bharti Infratel -6.2 per cent, Adani Ports -5.7 per cent, Eicher -3.3 per cent, HUL -1.9 per cent, Titan -1.7 per cent, Bharti Airtel -1.6 per cent, HDFC -1.5 per cent and JSW Steel -1.3 per cent were among Nifty losers.
It will be a truncated week as markets were shut on Monday on account of Mahashivratri. Lets take a look at some events which will guide the markets.
Lok Sabha election dates this week
Election Commission is set to announce poll dates for 2019 Lok Sabha election this week. EC is also likely to decide on holding elections in the state of J&K which is currently under President's rule. Reports indicate EC may hold Lok Sabha elections in seven or eight phases.
Hope of de-escalation of tension at border with Pakistan was short-lived, on Sunday Indian Air Force's Sukhoi 30 MKI shot down a Pakistani drone at Bikaner, Rajasthan border region. Late on Sunday, an encounter broke out between Indian security forces and terrorists in Tral, Jammu & Kashmir. Market will watch cues from border for further movement, expected to trade volatile till clarity emerges on border issues.
China-US trade talks
United States and China are said to close to a deal that would roll back U.S. tariffs on at least $200 billion worth of Chinese goods, accoridng to a report by news agency Reuters. China is likely to make a pledge on structural economic changes and eliminates retaliatory tariffs on U.S. goods. U.S. President Donald Trump and Chinese President Xi Jinping could seal a formal trade deal at a summit around March 27 given progress in talks between the two countries.
Crude price movement
Crude gained on OPEC output cut and reports of United States and China inching close to a deal on a tariff row that has slowed global economic growth. Brent crude futures were up 63 cents at $65.70/bbl, WTO crude up 55 cents at $56.35 per barrel on Monday. Supply from the OPEC fell to a 4-year low in February.
Street will watch for February PMI data, PMI for services stood at 54.3 which was a 14-month high.
ECB rate decision
European Central Bank will be announcing its policy decision on Thursday, widely expected to keep rates unchanged. ECB President will be addressing a press conference later on Thursday, likely to announce further measure to prop up the economy and boost credit demand.
Brexit deadline looms
European Union's chief Brexit negotiator Michel Barnier will meet Britain's Brexit negotiating team on Tuesday as both sides seek a breakthrough in the stalemate talks. The meeting will take place in Brussels and comes after Barnier said on Saturday that the European Union was ready to give Britain further guarantees to help push a troubled divorce deal through the British parliament.