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Market may rise in early trade
27-Mar-18   07:54 Hrs IST

The stock market may see higher opening on strong global cues. Overseas, Asian stocks edged higher after Wall Street rebounded in previous trading session amid a slight easing in trade tensions. US stocks closed sharply higher yesterday, 26 March 2018, bouncing back from strong losses in the previous session as trade tensions between the US and China appeared to ease.

Back home, IT major Wipro announced an expanded global relationship with Adobe to create, build and run digital marketing solutions and campaigns for their clients, across the globe. As a part of this alliance, Wipro will embed Adobe's design and prototyping software, Adobe XD CC, the all-in-one UX/UI solution for designing and prototyping mobile apps and websites, into its Digital Experience Platform. The announcement was made after trading hours yesterday, 26 March 2018.

On the macro economic front, the Government of India (GoI), in consultation with Reserve Bank of India (RBI), deliberated over its borrowing programme for FY 2019 and finalised its borrowing calendar for the first half of FY 2019. GoI had budgeted for FY 2019 Gross G-Sec borrowing of Rs 6.05 lakh crore. The GoI intends to use larger inflows from small savings schemes to fund its fiscal deficit during the year. The GoI will borrow Rs 1 lakh crore from NSSF as against budgeted amount of Rs 75000 crore. After making careful assessment of its financial needs for the first half, the GoI's gross G-Sec borrowing will be only Rs 2.88 lakh crore in the first half of FY 2019. This makes up only 47.5% as against 60-65% share in this period in previous years.

The GoI also plans to issue more Floating Rate Bonds (FRBs) and introduce CPI linked bonds, both put together, to the extent of 10% of issuances during the year.

The GoI will introduce two benchmarks during this half year - 2-year and 5-year - to meet the market demand. More issuance will be planned in short and long-term maturity bucket, reducing the issuance in medium term segments of 10-14 years to around 29%, as against more than 50% issuances in previous years.

GoI's T Bill programme for the first quarter is to raise Rs 1.95 lakh crore. During this period, T Bills of Rs 1.53 lakh crore will expire. The gross borrowing per week under T-Bills will be Rs 15000 crore.

The stock market jumped yesterday, 26 March 2018, as gains in European stocks and recovery in Asian shares boosted investors' sentiment on easing fears of global trade wars. The Sensex had surged 469.87 points or 1.44% to settle at 33,066.41, its highest closing level since 21 March 2018.

The trading activity showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 741.19 crore on 26 March 2018 as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 2017.95 crore on 26 March 2018, as per provisional data.

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