Markets likely to make a soft start on feeble global leads

The Indian markets closed with moderate cuts in last session as the weaker than expected industrial production numbers dampened investors' morale. Index heavyweights like Reliance Industries, Infosys and major banks led the decline in the session. Today, the start is likely to be on a cautious note, though the reports that Greek Parliament passed an austerity bill to cut government spending will prevent the markets from drifting lower, lack of significant upside triggers would make it difficult for the frontline indices to move higher. PSU oil and gas companies are likely to feel the heat of surging international crude oil prices in the session. Index heavyweight Reliance may see some profit booking on reports that gas output from its flagship KG D6 gas fields may see a further decline till new wells are tied in for production. Meanwhile, investors will also be awaiting important earnings announcements from bellwethers like State Bank of India and Coal India. While SBI is expected to report marginal growth in net profit, Coal India is likely to register strong jump in its net profit for the quarter ended December 2011.

Apart from this there will be lots of scrip specific actions to keep the markets buzzing, Cipla, Essel Propack, Arvind, Aurobindo Pharma, Gujarat NRE Coke, Reliance Power, SAIL, Indian Oil Corp, Shree Renuka Sugar and Punj Lloyd are among the many to announce their numbers today.

The US markets snapped their gaining streak on Friday as investors worried that negotiations over a Greek bailout have unraveled, sending major US stock indices lower. Sentiments also were pressured by weak US consumers' sentiment reading which declined more than forecasted in February. The Asian markets have mostly made a positive start and barring the Chinese stocks most are trading with moderate gains as Greek lawmakers approved harsh new austerity measures demanded by bailout creditors to save the debt-crippled nation from bankruptcy. Japanese share are trading on a flat note after data showed Japan's GDP shrank more than expected in last three months of 2011 as a rising yen and floods in Thailand hurt businesses.

Back home, Friday's session turned out to be a subdued one for the Indian stocks markets, which declined around half a percentage points and failed to extend the gaining momentum for the third straight session. Frontline indices tested the psychological 5,400 (Nifty) and 17,900 (Sensex) levels in the session but faced severe resistance around those levels after the gloomy industrial production spooked sentiments. However, the markets did not witness sharp sell-off in the session as despite the weaker than expected 1.8% industrial output growth in December, investors remained hopeful that the figures would show improvement in the coming months. Hefty selling pressure was evident in high beta Realty counter, which plunged around a percent while investors `were also seen squaring off positions from Oil & Gas and defensive Healthcare counters. Index heavyweight Reliance Industries too exerted pressure on the key gauges by drifting over a percent lower. On the earnings front, financial major IDFC got pounded heavily after announcing third quarter results, which were below street's expectations while ADA group stocks like R Com and R Capital settled on a somber note ahead of announcing their third quarter earnings later in the session. On the global front, Asian markets along with European counterparts exhibited pessimistic trends as investors remained nervous after European finance ministers demanded more steps overnight along with Greek parliament's approval before releasing the aid. Earlier on the Dalal Street, the benchmark got off to a cautious opening as investors largely remained influenced by the pessimistic sentiments prevailing in Asian markets. After the subdued opening, the equity indices crawled into positive terrain and touched the highest point in session in late morning trades. However, post the release of gloomy IIP numbers the markets drifted lower. The bourses got some support around the crucial 5,350 (Nifty) and 17,600 (Sensex) levels and recovered a great deal from the low point of the day and settled with moderate cuts. On the BSE sectoral space, Metal counter remained the only gainer in the space with gains of over half a percent while the high beta Realty sector along with Oil & Gas pocket remained top laggards in the session. Finally, the BSE Sensex lost 82.06 points or 0.46% to settle at 17,748.69, while the S&P CNX Nifty declined by 30.75 points or 0.57% to close at 5,381.60.