Markets to get a soft start on weak global cues

The Indian markets showed a choppy trade in last session and finally made another close marginally in red. Today, the start of the F&O series expiry session is likely to be subdued on feeble global cues amid rising tension in the Middle East, which has once again led to spike in the crude prices. The trade is likely to remain volatile with traders shifting their positions to the new series. There will be buzz in the infra stocks, as the Finance Minister Arun Jaitley, concerned over slow growth of manufacturing sector, has promised to step up public spending on infrastructure, ease entry barriers for overseas investors and push Goods and Services Tax (GST) to boost economic expansion. Meanwhile, Kerala Finance Minister K M Mani has been appointed as Chairman of the Empowered Committee of State Finance Ministers on GST. Power stocks too will be in action, as the Cabinet Committee on Economic Affairs approved a major policy intervention, through an innovative mechanism, to revive and improve utilization of the stranded gas based power generation capacity in the country. The PSU gauge too are likely to see some action, as the Finance Minister Arun Jaitley has said that the government has drawn a list of state-owned companies which will be put on block for strategic sale.

The US markets suffered sharp sell-off in last session, which dragged the major averages below the levels seen before last week’s Federal Reserve-inspired rally. Traders’ sentiments were weighed down by a report showing unexpected drop in durable goods orders in the month of February. The Asian markets have made mostly a lower start tailing the weak global cues, though some of the indices are showing recovery sign too, Chinese market after dropping initially has resumed its rally mood.

Back home, extending their southward journey for sixth straight session, Indian equity benchmarks ended the Wednesday’s trade with modest cut, amid a choppy trading session, as investors turned cautious on penultimate day of the expiry of March derivative contracts. Sentiments also weighed down after the Standard & Poor’s (S&P) Ratings Services suggested that Indian companies in infrastructure, metals & mining and oil & gas sectors have high debt levels. Moreover, investors failed to get any sense of relief from report that Mauritius promising full cooperation with India to address outstanding issues relating to their bilateral tax treaty. On the global front, European markets traded mostly in the red in early deals, while the Asian stocks ended mixed. Back home, depreciation in Indian rupee too dampened the sentiments. Sentiments also weighed down on report that Domestic institutional investors (DIIs) sold shares worth a net Rs 631.67 crore on Tuesday, as per provisional data. Meanwhile, metal & mining stocks continued to edge lower after data released on March 24, 2015 showed Chinese manufacturing activity dropped to an 11-month low in March 2015. On the flip side, pharma stocks continued to surge on a slew of positive news with mergers and acquisitions of new product patents. Moreover, the telecom stocks remained mostly in jubilant mood, as the spectrum auction may come to an end today. The government’s kitty from the telecom spectrum auction rose to Rs 1.09 lakh crore with the provisional allocation of 89 per cent radiowaves made at the end of the 18th day. Additionally, public sector oil marketing companies (OMCs) viz. BPCL and IOC edged higher after decline in the global crude oil prices. Finally, the BSE Sensex dropped by 49.89 points or 0.18% to 28111.83, while the CNX Nifty declined by 12.15 points or 0.14% to 8,530.80.