Markets to make a positive start on cheerful global cues

The Indian markets after much of dilly-dallying managed a modestly higher close in last session. Today, the start of the penultimate day of F&O expiry is likely to be in green taking cues from the other global markets. Traders will be getting some support with Finance Minister Arun Jaitley’s statement that the government is committed to work for the betterment of every citizen. Though, there will be some concern as well, with the 14th Finance Commission suggesting a fiscal deficit target of 3.6 percent of GDP in 2015-16 and 3 percent in the subsequent years on the back of likely pick-up in economic growth. Also, as a Business Confidence Survey by the Federation of Indian Chambers of Commerce and Industry (Ficci) showed a marginal dip in the proportion of respondents anticipating 'moderately to substantially better' performance over the near-term at economy, industry and company level. There will be some buzz in the power sector stocks, as the World Bank has called for more transparency in India's power subsidy regime and suggested re-identification of the target population to improve the balance-sheets of losses-stricken discoms. The railways stocks too will remain in action a day ahead of the rail budget.

The US markets made a positive close in last session supported by the dovish testimony by Federal Reserve Chair Janet Yellen, where she indicated that the Fed is not likely to begin raising interest rates for at least the next couple monetary policy meetings. Asian markets have mostly made a positive start with indices extending a five-month high, after Federal Reserve Chair Janet Yellen’s comment, though the Chinese market were marginally in red despite flash Manufacturing PMI coming four-month high at 50.1 in February against 49.7 in January.

Back home, Tuesday turned out to be choppy day of trade for Indian equity benchmarks as investors opted to remain on sidelines ahead of key events including Economic Survey, Railway Budget and Union Budget, along with the expiry of February series due later during the week. Though, key gages managed to keep their head above water with Sensex recapturing its crucial 29,000 mark. Some support came with President Pranab Mukherjee’s statement while addressing the joint session of parliament that the latest estimates of India’s gross domestic product (GDP) growth making it the fastest growing large economy in the world, is Narendra Modi-led government’s most significant achievement till date. However, gains remained capped after Standard and Poor’s said the government must deliver on its reform promises, as low income levels and weak fiscal indicators were constraining the sovereign’s credit worthiness compared to its peers. Gains also remained limited due to falls in resource stocks such as Reliance Industries on fears lower crude oil prices would hurt margins, while coal users were down on profit-taking after recent rally during coal block auctions. On the global front, European markets traded mostly in the red in early deals, while most of the Asian equity indices ended in the green. Back home, appreciation in Indian rupee too supported the sentiments. Meanwhile, public sector oil marketing companies (OMCs) viz. HPCL and BPCL edged higher after crude oil prices dropped. However, telecom stocks range off after Telecom Regulatory Authority of India (TRAI) in a move to boost fixed line phone connections in the country, removed charges that a landline service provider has to pay to the other service providers for transmitting its customers’ phone calls. Finally, the BSE Sensex rose by 29.55 points or 0.10% to 29004.66, while the CNX Nifty gained 7.15 points or 0.08% to 8762.10.