Markets to get a flat-to-positive start, may move higher in latter trade

The Indian market continued their rally and major indices strengthened by another half a percent in last session taking cues from the global markets. Today, the start is likely to be cautious but in green, however volatility too can be expected with the F&O series expiry slated later in the week. Traders will be getting some support with a report that US investors, buoyed by optimism about India's economy and booming stock market, have been moving money into exchange-traded funds that focus solely on that country. On domestic front traders as well as India Inc will be getting some respite, as the government is hopeful of getting the GST Constitutional Amendment Bill passed in the ongoing Winter session of Parliament so that the new tax regime could be rolled out by April 1, 2016. There will be some buzz in the telecom and media stocks, as the Centre has finalised the broad outline for appointing a new super-regulator governing telecom, information technology and broadcast through a new Bill. The Communication Bill will repeal four existing Acts, including the Indian Telegraph Act 1885 and the Telecom Regulatory Authority of India Act 1997. The auto sector stocks, especially heavy vehicle makers too can be seen in action, as the Heavy Industry Ministry has sought key changes in the Draft Road Transport & Safety Bill to make things easier for automobile companies.

The US markets extended their gains and ended modestly higher in last session with the Dow and the S&P 500 reaching new record closing highs. However, trading activity on Wall Street remained relatively light, with lack of major US economic data. The Asian markets have made mostly a green start with Japanese market catching up after a break.

Back home, extending their northward journey for third consecutive session, boisterous benchmarks once again logged new record highs with Nifty surpassing its crucial 8,500, while Sensex ending tad below the crucial 28,500 mark. The markets, despite some choppiness in noon deals, traded jubilantly throughout the session and ended at their fresh record high levels as sentiment was buoyed after the prospect of further policy stimulus in China and Europe whetted the risk appetite globally, while the capital inflows on expectations of further economic reforms by the government as the Winter Session of Parliament begins today too boosted the trading sentiment. Meanwhile, Finance Minister Arun Jaitley stated that Budget 2015-16 would unveil “a whole set of second-generation reforms” as well as reforms that require undoing. He pointed that a rational and reasonable tax regime is undoing thing. Some procedure changes in the land (acquisition) law is an undoing, with government is all set to table insurance amendment Bill and Goods and Services Tax (GST) Bill in the ensuing winter session of parliament. Also, the Finance Minister expressed its intent to embrace a benign, predictable and pragmatic tax policy and said that unsustainable tax demands will earn the country a bad name in the comity of global investors. Buying got intensified in last leg of trade with positive start of the European markets, while the Asian markets too ended mostly in the green. Back home, sentiments remained up-beat on report that foreign portfolio investors (FPIs) bought shares worth a net Rs 122.50 crore during the previous trading session on November 21, as per provisional data. Moreover, traders have overlooked the quarterly survey by industry body Ficci, which has suggested moderation in manufacturing growth in the October-to-December quarter as compared to the July-to-September period of 2014-15. Finally, the BSE Sensex surged by 164.91 points or 0.58%, to 28499.54, while the CNX Nifty soared by 52.80 points or 0.62% 8,530.15.