Markets to make cautious start on feeble global cues

The Indian markets surged around half a percent in last session after the World Bank has estimated that Indian economy is likely to grow by 6.4% in 2015. Today, Markets are likely to make cautious start on feeble global cues as a continuing slide in crude oil prices dampened risk appetite. Markets would also react to IIP and CPI data which came post market hours on Monday. India’s industrial growth for the month of November came in at 3.8% versus -4.2% for October, supported by favorable base effect and a pick-up in manufacturing, higher working days on a month-on-month basis, while India’s CPI edged higher to 5% in December as compared 4.38% in November. However, the number is way lower than street's expected figure of ‘5.20%’. Investors will be getting some support with Finance Minister Arun Jaitley saying that the government is expected to implement a common Goods and Services Tax (GST) across the country in the course of next year. Gems and Jewellery stocks likely to be in action as Indian families are increasingly banking on household gold to meet the bridal jewellery demand for the upcoming wedding season that kicks off from mid-January, a trend that’s likely to bring down its import by 73% to 40 tonnes in January, against 151 tonnes in November last year.

There will lots of important result announcements too, to keep the markets buzzing. DCB bank, Geojit BNP Paribas, Indusind Bank, Lakshmi Vilas Bank and RIIL are among many to announce their numbers today.

The US markets ended lower in last session amid another sharp drop by the price of crude oil, which has fallen to its lowest levels in almost six years. The Asian markets have made mostly a soft start as investors remained on sidelines ahead of Chinese trade data, especially as recent signs of weakness in the world’s second largest economy have been central in worries over global growth.

Extending their winning streak for third day in a row, Indian equity benchmarks ended the volatile day of trade with a gain of around half a percent. Hectic buying activity which took place during last leg of trade mainly drove the markets higher, with frontline gauges ending at intraday high levels, recapturing their crucial 27,550 (Sensex) and 8,300 (Nifty) bastions. Earlier, domestic bourses traded listless for most part of the day’s trade near their previous closing levels as traders were cautious ahead of key retail inflation and industrial output data due later in the day that will likely to set the tone for the Reserve Bank of India’s (RBI’s) move on interest rates in its next policy review in February. IIP data is likely to expand to 2.2 per cent in November, while the CPI inflation should accelerate to 5.4 per cent in the month of December as compared to 4.4 per cent reported in the month of November. Reports suggesting foreign institutional investors turning net sellers of $311.79 million worth shares this month, too weighed down sentiments. However, sentiments took U-turn in last hour of trade as market-participants opted to take positions in beaten down but fundamentally strong stocks. Some solace also came after the World Bank has estimated that Indian economy is likely to grow by 6.4% in 2015 and accelerate further in the next year on the back of steps being taken by the Narendra Modi-led NDA government. Positive opening in European counters too supported the sentiments. Back home, appreciation in Indian rupee too supported the sentiments. The partially convertible rupee was trading at 62.23 per dollar at the time of equity market closing against the Friday’s close of 62.31 on the Interbank Foreign Exchange. Finally, the BSE Sensex surged by 126.89 points or 0.46%, to 27585.27, while the CNX Nifty soared by 38.50 points or 0.46% to 8,323.00.