Markets to get a positive start taking cues from the regional peers

The Indian markets after dilly-dallying managed a positive close in last session, today the start is likely to be in green taking cues from the regional markets and also lots of traders will return from the Christmas holiday. Traders will be getting some support from the report that overseas investors poured in $2 billion in the Indian capital markets this month so far, taking total inflows to $42 billion since January this year. Also, there are reports that the Narendra Modi government is set to unleash several big-ticket announcements over the next few weeks, starting with changes in the land acquisition law through an ordinance. There will be some buzz in the electronics manufacturing stocks, as the government has approved a clutch of investment proposals worth about Rs 6,000 crore in the past six months under electronics manufacturing schemes. There will be some buzz in the telecom stocks too, as the Department of Telecom has sought the views of Defence and Finance ministries on the draft note on spectrum auction, which is scheduled to take place from February 23 next year.

The US markets made a flat closing with a positive bias in the last session with both the Dow and S&P 500 closing at records, though the trading volume remained low due to holiday. The Asian markets have made a jubilant start headed for their third straight annual advance. Hong Kong market has surged over two percent in early deals as China’s central bank will widen the definition of deposits that lenders can use to meet financial ratios, giving them room to make more loans.

Back home, key domestic benchmarks managed to keep their head above water on Friday with nifty and Sensex recapturing their crucial 8,200 mark and 27,200 levels respectively as investors opted to buy beaten down but fundamentally strong stocks, after two sessions of drubbing. Hectic buying activity which took place during last leg of trade mainly drove the markets higher. Some support also came with a report that the government is pushing ministries to ensure mechanism for faster clearances. The Prime Minister's Office has shot off letters to the ministries and departments concerned, asking them to expedite implementation of tasks identified as being their responsibility. Depreciation in Indian rupee too dampened the sentiments. Rupee were trading at 63.61 per dollar at the time of equity markets closing compared with its previous close of 63.51 on month-end dollar demand and profit-booking by FIIs. On the global front, Asian markets extended a weekly gain while the yen fell against the dollar as slowing inflation in Japan boosted hopes that the central bank will introduce more stimulus to revive the economy.  Back home, some support came after the government has approved key insurance, coal and pharma sector reforms which were stuck in Parliament logjam, to boost the domestic economic growth. Some sense of relief also came after Minister of State for Finance Jayant Sinha said, the government is committed to containing fiscal deficit at 4.1% of the Gross Domestic Product (GDP) this fiscal. The government has targeted fiscal deficit of 4.1% of GDP for FY15, down from 4.5% in the previous year and plans to reduce it further to 3% by 2016-17. Finally, the BSE Sensex added 33.17 points or 0.12%, to 27241.78, while the CNX Nifty gained 26.60 points or 0.33% to 8,200.70.