ICICI Securities Market Outlook - Nifty to retest life highs of 12400 by December...

As per media sources, a federal Judge has blocked the enforcement of H1B visa ban issued by the US government. The injunction is subject to appeal.

As per media reports, Telecom Regulatory Authority of India (Trai) is likely to drop the proposal of putting in place floor prices for both data and voice tariffs as it is felt there is no need for such a measure now.

As per media reports, the government may roll out new National Textile Policy by next month. Also, the central government plans to extend special export package for 40 manmade fibre (MMF) products and 10 technical textile products.

Domestic passenger traffic in the aviation sector has registered a sequential growth of 37% to 39 lakh passengers in September. However, on a year-on-year basis, it is still down 66%. Airlines, at present, are allowed to operate at 60% capacity.

As per media sources, West Bengal State Beverages Corporation has issued a notification with a new price structure. Price of light beer will come down by 25-40% while for strong beer the drop will be 15- 20%, making the beverage one of the cheapest in the country.

As per media reports, Australia's largest investment funds, collectively managing assets of more than A$736 billion (Rs. 38 trillion) met NIIF to explore investment opportunities in India. The virtual delegation included several of Australia's largest superannuation (pension) funds and the Future Fund, Australia's independently managed sovereign wealth fund.

Brent Crude prices ended higher at US$ 42.9/barrel as compared to previous week's closing price of US$ 41.9/barrel. Gold prices ended higher at $ 1919/ounce as compared to previous week's closing price of $ 1906/ounce. Bond yields ended lower at 5.93% as compared to previous week's closing price of 5.99%.

International Markets:

US Markets: The US markets continue to trend higher on hopes of a near term stimulus package. The number of US citizens filing new claims for unemployment benefits continued to remain near the record highs. Initial claims for state unemployment benefits came at a seasonally adjusted 0.8 million for the week ended Sep 12, 2020 vs a similar number of cases in the prior week. US Fed in its minutes has warned that the economic outlook remains "highly uncertain" and too little policy uncertainty would lead to more business insolvencies and recession.

European Markets: The European markets positive on coronavirus stimulus developments. Euro area retail trade volume rose 4.4% YoY and 3.8% MoM in August, as the volume of retail trade was up 6.1% for non-food products, 2.4% for food-drinks-tobacco, and 2.1% for automotive fuels.

Source : Equity Bulls

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