Markets to get a positive start ahead of the GDP data for the September quarter

The Indian markets despite some choppiness managed a modestly positive ending in last session. Today, the start of the new series is likely to be in green tailing the gains in regional indices, though there will be some cautiousness as well ahead of the official GDP data for the September quarter scheduled to be released later in the day. Traders will be getting some support with ratings agency Moody's report which expects the country's GDP to grow at 5.3 per cent in the July-September quarter of the current fiscal, better than 4.8 per cent clocked in the year-ago period. There will be buzz in finance companies, as the Reserve Bank of India on Thursday issued final guidelines for companies seeking to set up payments banks and small finance banks in a bid to expand banking services to more people and small businesses. The central bank has included non-bank prepaid card issuer, mobile companies, telecom companies, business correspondents, PSU companies, real sector cooperatives and supermarket chains as promoters of payments banks, while it has allowed NBFCs, MFIs and local area banks to convert to small banks. India Inc will also be in action with Finance Minister Arun Jaitley’s statement that the government will bring the much- awaited GST Bill in the current session of Parliament. Power and mining stocks too will keep buzzing with the Coal Ministry adding 18 more blocks to the 74 being offered in the first bidding round, taking the total to 92.

The US markets remained closed in last session unable to give any cues to other global markets, though the Asian markets have made mostly a positive start after Japan’s consumer price index slowed a third straight month amid tumbling oil prices, which may force BOJ to step up stimulus efforts if they are to reach their inflation goals. Also, the yen fell for the first time in four days and strengthened the sentiments.

Back home, the F&O expiry session on Thursday depicted its true trend and the benchmark indices kept moving in and out of the red terrain, though it was largely a range bound trade and traders remained cautious ahead of the release of key economic data. The government will issue gross domestic product (GDP) data for the September quarter and fiscal deficit data for October on 28 November, while the Reserve Bank of India (RBI) will announce its monetary policy on 2 December. Traders overlooked an S&P note saying that Asia-Pacific economies are losing momentum as they approach the finish line in 2014, but India is bucking the trend. Also, an another ratings agency Moody's in its report expects the country's GDP to grow at 5.3 per cent in the July-September quarter of the current fiscal, better than 4.8 per cent clocked in the year-ago period.The global cues were mixed and while the US markets ended with modest gains overnight, most of the Asian stocks hit a one-month high on Thursday, betting on more central bank stimulus in China and Europe, while the European markets made a cautious but positive start. Back home, markets mood remained volatile till the end and the last hour short covering finally took the leading benchmarks end the session with gains of around a quarter percent, while posting huge gains of around 4 percent for the series. The broader markets outperformed benchmarks throughout the session and Midcaps remained an outperformer for the series as well. The realty stocks that had rallied in last session after government's approval for hike in floor area ratio (FAR) in Delhi, too witnessed some profit booking in the early trade. However, they bounced back with the Reserve Bank of India (RBI) easing norms to fund low-cost housing by permitting banks to extend loans against long-term infrastructure bonds. On the same time the PSU oil marketing companies were in a jubilant mood after Brent crude fell to a four-year low under $76.30 a barrel on Thursday as it became increasingly unlikely that Opec would cut output in support of prices.BPCL and IOC were up by about 2%, while HPCL gained over 3%. Power stocks were in most jubilant form, as the government articulated its blueprint for energy security which guarantees adequate supply at affordable prices. Finally, the BSE Sensex surged by 52.72 points or 0.19%, to 28438.91, while the CNX Nifty gained 18.45 points or 0.22% 8,494.20.