Markets to get a positive start after a day of consolidation

The Indian markets consolidating after slew of some good runs, ended marginally in red in last session. Today, the start is likely to be good and markets may again start moving higher on good global cues. Also, traders will be getting some support with global rating agency Fitch Ratings statement that India's economic growth is expected to pick up to 5.6 percent in the current fiscal on account of structural reforms being rolled-out by the government. Meanwhile, Reserve Bank of India (RBI) governor Raghuram Rajan has said that India will focus on sustainable economic growth and developed economies should do the same. There is going to be buzz in the coal and mining stocks, as the government is likely to come out with the draft policy for auction of coal mines de-allocated by the Supreme Court. Once the draft rules are announced today, the government will seek feedback from various stakeholders after which the policy will go to the Cabinet. Gold related stocks are likely to remain under pressure as the government could soon reimpose some restrictions on gold imports to keep them in check.

The US markets ended higher in last session with Dow and the S&P 500 surging to new record closing highs, in a positive reaction to news out of Japan, where Prime Minister Shinzo Abe said he is postponing a planned but unpopular sales tax increase for 18 months. The Asian markets after a positive start and are trading mixed with some of the indices showing cut of about half a percent. Japanese market too was flat ahead of the BoJ’s policy decision.

Back home, benchmark equity indices came off their fresh record highs to end marginally lower weighed down by profit taking in IT majors and realty counter. Bourses, after making a good start scaled fresh highs in early session of trade but, turned flattish in noon deals as investors opted to book some profit off the table at high point of day’s trade. However, losses remained capped on reports that foreign institutional investors remained net buyers in Indian equities worth Rs 656.37crore on November 17, as per provisional stock exchange data. Meanwhile, Finance Minister Arun Jaitley said that inflation has moderated and global fuel price has eased and hoped that Reserve Bank of India would prune interest rates as it will give a ‘good fillip’ to the Indian economy. On the global front, European stocks traded higher on Tuesday, adding to the previous session's rally, while Asian markets ended mostly in the green led by Japanese Nikkei. Back home, sentiments remained dampened as rupee depreciated to its lowest level in a little over a month as private oil firms bought dollars while a broadly stronger dollar also hurt sentiment for the local unit. The partially convertible rupee was at 61.78 per dollar at the time of equity markets closing as compared with its close of 61.73/74 on Monday. Meanwhile, shares of jewellery companies edged lower on concerns that the Reserve Bank of India (RBI) may increase the restrictions on gold imports.  On the flip side, infrastructure shares remained on buyers’ radar after Arun Jaitley said that he is in discussion with the members of opposition parties to make necessary procedural changes in Land Acquisition Act in order to avoid delay in the implementation of the infrastructure projects. Metal shares gained considerably with Sesa Sterlite leading the pack with gains of around 4% as the company is set to take up the Rs 2,500-crore expansion at its copper smelter plant in Tuticorin. Finally, the BSE Sensex declined by 14.59 points or 0.05%, to 28163.29, while the CNX Nifty lost 4.85 points or 0.06% 8,425.90.