Markets to make a soft start on weak regional cues

The Indian markets made a modestly positive close in last session supported by some upbeat earnings number. Today, the start is likely to be slightly in red tailing the weakness in the regional peers. However, there is some positive news from domestic Services sector front, as the Services exports rose 5.3 per cent to $ 12.94 billion in September this year compared to the same month last year. Meanwhile, industry chamber Assocham has suggested that government must use the opportunity to integrate proposed Foreign Trade Policy with the 'Make in India' programme. Today, there is likely to be buzz in the PSU stocks, as the Centre has begun the process of shutting some sick state-run firms. A Cabinet note proposing the closure of six firms under the department of heavy industry has been circulated, which includes Hindustan Photo Films, HMT Bearings, HMT Chinar Watches, Tungbhadra Steel, Hindustan Cable and the iconic HMT Watches. There will be lots of result reactions to keep the markets buzzing.

The US markets made a flat closing in last session despite the release of data pointing to solid consumer spending. The Asian markets have made a weak start with some of the indices losing 1-2 percent in early deals, led by the Japanese market which is down over two percent, after the world’s third-largest economy unexpectedly entered recession.

Back home, Indian equity benchmarks ended the volatile day of trade in green terrain with Sensex recapturing its crucial 28,000 mark on sustained capital inflows and positive economic data. Overall, sentiments remained up-beat after India’s main inflation gauge, based on monthly WPI, softened to five year low at 1.77% for the month of October as compared to 2.38% (Provisional) for the month of September. The reading was way below the street expectation, which were expecting figure to be near 2% mark for the month under review. Meanwhile, the Organisation for Economic Cooperation and Development (OECD), in its latest economic outlook report for Asian countries, has highlighted that Indian economy is expected to witness an average growth of 6.7% over the 2015-19 period and a further boost would depend on reform plans of the government. On the global front, European markets traded mostly in the green in early deals, while Asian markets too concluded mostly in green. Back home, sentiments remained up-beat on report that foreign portfolio investors bought shares worth a net Rs 690.61 crore yesterday, as per provisional data. Better than expected second quarter earnings from State Bank of India (SBI) too lifted the sentiments. The bank’s consolidated net profit after taxes and minority interest for the quarter under review registered 30.95% growth at Rs 4023.84 crore against Rs 3072.77 crore in the September quarter of previous fiscal. Meanwhile, stocks related to software and technology edged higher on weak rupee. The Indian rupee was trading at 61.77 at the time of equity markets closing against the US dollar compared to the previous close of Rs 61.54. Stocks related to rate sensitive counters like Banking and Auto too remained on buyers’ radar amidst hopes that RBI may slash interest rates in upcoming monetary policy in December after 5-year low October WPI data. Finally, the BSE Sensex surged by 106.02 points or 0.38%, to 28046.66, while the CNX Nifty gained 32.05 points or 0.38% to 8,389.90.