Markets to make a good start on jubilant global cues

The Indian markets surged in last session and recorded their fresh all time closing highs, today the start of the F&O expiry week is likely to be good and Nifty will be seen surpassing the 8500 levels in the very initial trade. There will be hopes in domestic markets of a possible rate cuts, after Chinese central bank that the Indian counterparts may replicate the same. Also, with the start of Winter session of Parliament there will be lots of action from policy front with government planning to push an ambitious economic agenda. The much-delayed Insurance Bill and Goods and Service Tax Bill are high on agenda of the government. Meanwhile, Finance Minister Arun Jaitley has said that Budget 2015-16 would unveil "a whole set of second-generation reforms" as well as reforms that require undoing. However, there will be some cautiousness as well, as a Ficci survey has stated that the country’s manufacturing sector is likely to witness a moderate growth in the third quarter of this fiscal. Also, the foreign direct investment (FDI) to India, falling for the second month in a row, declined about 16 per cent to $2.45 billion in September.

The US markets made a good closing in last session with major averages adding around half a percent of gains for the day. The gains were contributed mostly by the comments from European Central Bank President Mario Draghi indicating that the bank may broaden its asset purchases in an effort to boost inflation and as China’s central bank cut its benchmark interest rates. The Asian markets have made an all green start with majority of the indices trading higher by 1-2 percent in early deals, as China’s unexpected interest-rate cut stoked optimism in the global economy.

Back home, boisterous benchmarks showcased an enthusiastic performance on Friday, by rallying around a percentage point. Markets, after a flat opening, gained ground and there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength, as investors continued their hunt for fundamentally strong stocks. Frontline indices not only extended their rally for second straight session but also recorded their all time closing highs, settling comfortably above their crucial 8,450 (Nifty) and 28,300 (Sensex) bastions on account of strong buying in rate sensitive sectors like banks, auto, realty and select metal shares. Sentiments remained up-beat on fresh capital inflows led by a series of economic reforms announced recently by the government. Also, some support came after Finance Minister Arun Jaitley on Thursday asked the chiefs of public sector banks (PSBs) to increase the flow of credit to various sectors of the economy without being unduly conservative and firmly deal with the issue of rising non-performing assets (NPAs). Moreover, investors will watch out for Monday as the parliament convenes its winter session in which the government is confident of passing legislation to allow more foreign investment in the insurance industry.Rally in European markets too supported the sentiments, while Asian markets shut shop mostly in the green, led by rally in Chinese Shanghai composite. Back home, International ratings agency Moody’s Investors Service has revised outlook of the country’s non-financial corporates to stable from negative in view of momentum in economic recovery and political stability. Moreover, appreciation in Indian rupee too supported the sentiments. Finally, the BSE Sensex surged by 267.07 points or 0.95%, to 28334.63, while the CNX Nifty soared by 75.45 points or 0.90% 8,477.35.