The Indian markets despite some recovery attempt could not manage a positive close in last session and major averages suffered cut of another quarter a percent. Today, the start is likely to be in green and the markets will recover some lost ground tailing the bounce back in other global markets. Traders will be getting some support from Finance Minister Arun Jaitley’s statement that the ongoing global slow growth is an opportunity for the country as investors are eyeing this market. The union minister said investments would trigger economic activity which will in turn boost growth and lead to job creation. There will be buzz in the power sector, as the Power Ministry aiming to bring another set of reforms in the sector, is drafting a Cabinet note proposing amendments to the Tariff Policy for enabling greater competition in the sector. The telecom stocks too will be in action, as the inter-ministerial Telecom Commission disagreed with Trai’s suggested reserve price for 3G spectrum and sent the proposal back to the regulator for a review. Trai will now re-consider the matter and will send its recommendations back to the commission in about a fortnight.
The US markets regained some ground in last session coming out of a slew of decline, on good private sector jobs data and gain in crude prices. The Asian markets have made mostly a positive start, taking cues from the US markets and as crude oil maintained its advances. Traders in the region were getting support from Fed Minutes where most of the officials agreed their commitment to be “patient” on raising US interest rates.
Back home, Indian equity benchmarks ended the choppy day of trade slightly in the red on Wednesday as traders remained concern over falling crude oil prices and political uncertainty in Greece. Sentiments also remained dampened on reports that foreign institutional investors were net sellers in Indian equities worth Rs 1,570.76 crore on January 6, 2015, as per provisional stock exchange data. Investors also remained on sidelines ahead of Infosys December-quarter result on Friday. India’s second largest information technology services company is likely to lower its revenue growth guidance for FY15, as persistent cross-currency headwinds coupled with the seasonal weakness are seeing weighing on the company’s performance. However, losses remained capped as some respite came with Finance Minister Arun Jaitley saying that infrastructure sectors such as coal, power and cement have been recording double digit growth in the last few months while growth in the manufacturing sector is still patchy and reviving manufacturing, diversifying its base and equipping it for robust long-term expansion is one of the major challenges before the Centre. Meanwhile, in a customary pre-budget consultation with finance minister Arun Jaitley, India Inc has pitched for reduction in corporate tax rate, aggressive disinvestment of government stake in public sector units, higher personal income tax exemption limits and a massive increase in public expenditure to boost growth. On the global front, European counters traded higher in early deals, while Asian equity indices managed to hold up in positive territory. Meanwhile, selling witnessed in banking space for third straight day in the absence of any significant reform centric announcements during the two-day banking conclave which was held in Pune and attended by Prime Minister, RBI Governor and top officials from the banking and insurance sector. On the flip side, paint makers and PSU oil marketing companies edged higher as oil prices extend losses. Additionally, Telecom stocks edged higher after a day of drubbing when Union Cabinet approved the largest ever telecom spectrum auction that is targeted to fetch the exchequer at least Rs 64,840 crore, much higher than the target of Rs 43065 crore set in the Union Budget for 2014-15. Finally, the BSE Sensex dropped by 78.64 points or 0.29%, to 26908.82, while the CNX Nifty declined by 25.25 points or 0.31% to 8,102.10.
