Markets to get a positive start of the new series

The Indian markets pulled back from the consolidation mood in last session and major indices posted gains of about half a percent, today the start of the new series is likely to be in green on good global cues. There will be buzz in the market with the scheduled divestment of Coal India. The government will offer Coal India shares at a floor price of Rs 358 apiece for divestment of up to 10 percent stake in the state-run behemoth for an estimated Rs 22,600 crore.  Traders will be getting some support with an UN report that has stated that notwithstanding the decline in global foreign direct investment inflows, India's FDI increased by 26 percent in 2014 to an estimated $35 billion with maximum growth in the services sector. There will be some buzz in the companies associated with farm sector, as the global rating agency Moody’s in its Credit Outlook report has said that Improvement in India’s sovereign rating will depend on the government's ability to pursue farm sector reforms, as they have a bearing on inflation and fiscal deficit.

There will be lots of important result announcements that will keep the markets in action. Aarti Drugs, Adani Enterprises, Aegis Logistics, Andhra Bank, Berger paints, BoB, Dabur, HCL Tech, ICICI Bank, IFCI, JSW Steel, Jayshree Tea, NTPC and Siemens etc will report their numbers today.

The US markets made a smart bounce back in last session with the major averages recovering from the sell-off that was seen over the course of the two previous sessions. The gains were partly attributed to comments of Federal Reserve Chair Janet Yellen who reportedly told the lawmakers that the US economy is strong, though she apparently expressed some concerns about the situation in Europe. The Asian markets have mostly made a positive start with some of the indices headed for their first monthly gain since October.

Back home, Indian stock markets snapped the January futures and options series on a strong note with a massive gain of over nine percent. Moreover, the expiry session turned out to be a fabulous day of trade for the Indian equity markets, which scaled fresh all time closing highs for yet another session amid sustained foreign fund inflow. The markets, on the January F&O expiry day, traded choppy for most part of the session, but sudden spurt witnessed in dying hour of trade helped markets to end near intraday high levels. Sentiments got some support with the government fast-tracking reforms. Some optimism also came with Global credit rating agency Moody’s Investor Service saying that India’s international credit ratings might be boosted if the government frames policies for the food sector based on the recommendations of a high-powered panel on reforming the Food Corporation of India (FCI) as it will reduce inflationary pressures and government’s fiscal deficit. Some support also came with report that foreign institutional investors were net buyers in Indian equities worth Rs 1,723 crore on January 28, as per provisional stock exchange data.  Global cues remained somber with European markets making a negative start, while the Asian markets ended in the red. Back home, depreciation in rupee dampened the sentiments. Meanwhile, shares of telecom companies edged lower after the Cabinet on Wednesday approved a higher base price for 3G spectrum auction. The Cabinet approved a base price of Rs 3,705 crore per megahertz (MHz) for 3G spectrum auction, a move which would help the government garner over Rs 1 lakh crore along with sale of other mobile frequencies. Meanwhile, telecom minister Ravi Shankar Prasad has said that the amount of spectrum that is being offered for auctioning is sufficient and that no shortage will result. Additionally, Coal India dropped in volatile trade after the government announced that it will sell up to 10% stake in the state-run coal major through the stock exchanges mechanism on January 30, 2015. The share sale price will likely be at a discount to the current market price to attract investors. Retail investors will get another 5% discount on the bid price. Finally, the BSE Sensex surged by 122.59 points or 0.41%, to 29681.77, while the CNX Nifty gained 38.05 points or 0.43% to 8,952.35.