Pre Market-Market to open in positive Analysis for Oct 21, 2013

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The domestic equity market is likely to open on a positive note tracking firm Asian markets, which are trading higher amid hopes that the US Federal Reserve will delay trimming its bond-buying stimulus into next year. Japan"s Nikkei rose amid rise in Country exports, which rose 11.5% in September from a year earlier. Further improving GDP data from China is supporting the sentiments. On the domestic front, the ongoing quarterly earnings will drive the market with HDFC, ICICI Bank, Cairn India, Wipro, ACC, Ambuja Cements, Hero MotoCorp, NMDC and ITC set to announce their results this week. Further, investors" focus will be Reserve Bank of India's monetary policy review schedule on October 29. Meanwhile, the investors will be keeping an eye on the September payrolls numbers from US to gauge the health of the economy. In SGX Nifty, Oct'13 contract last traded at 6,230 up by 25.00 points or 0.40% from previous settlement.

US markets rallied on Friday with S&P 500 index closing at record high for the second straight session marking the best weekly gain in three months amid strong earnings results from Google and Morgan Stanley and strong Q3 GDP growth data from China. Late Thursday, Google reported a 36% jump in third-quarter net income that beat Wall Street"s predictions. Strong third quarter results pushed Google"s stock past the $1,000 mark for the first time. Further, Morgan Stanley also posted a higher-than-expected quarterly profit. The US stocks rose on expectations that the Fed may delay plans to taper its stimulus program until early 2014. Besides, investors went long on strong GDP data from China, which eased concerns over the strength of recovery in the economy. China"s gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June. However, the fears over the impact of the government shutdown on the already fragile economic recovery and the possibility of another debt crisis capped gains.

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Story first published: Monday, October 21, 2013, 9:24 [IST]
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