Markets to make a negative start tailing global cues

The Indian markets lost their way in the final moments of trade in last session, with reports of Greece not reaching any deal. Traders fearing some hard sell-off went for profit taking and dragged the markets lower by about a quarter percent. Today, the start of the F&O series expiry session is likely to be soft-to-cautious tailing the weakness in the global markets. Amid volatility there can be some upmoves too, as the traders will try to cover their short positions before series expiry. Traders will be getting some support with an UN report saying that global foreign direct investment is expected to rebound in 2015 after falling 16 per cent last year due to a fragile world economy and political and military crises. Also, as Finance Minister Arun Jaitley promising a globally compatible business climate in India has said that reforms have become “absolutely necessary” in the areas of land, labour and taxes to attract investors. Traders will also be encouraged with report that FDI inflows in India rose 22 percent to $ 34 billion in 2014, and the upward trend is likely to continue against the backdrop of a push to manufacturing. The PSU banks will be in focus again, as four PSU banks sought capital infusion of over Rs 8,000 crore from the Centre for the current financial year. The ministry of finance is currently assessing the capital requirement of public sector banks for this fiscal.  

The US markets suffered sharp selling pressure in the last session, with Nasdaq pulling back well off previous session's record closing high, as the latest developments regarding Greece's negotiations with its creditors offset recent optimism about a potential deal. The Asian markets have made a weak start tracking the slump in the global markets, as Greece and its creditors broke off talks for the night in Europe without reaching a deal.

Back home, Wednesday turned out to be disappointing session for the Indian equity indices which got pounded by one third of a percent. Final hour of trade proved to be the curse for the markets and bourses settled below their crucial 27,800 (Sensex) and 8,400 (Nifty) bastions. Markets though traded with traction for most part of the trade, as investors indulged in enlarging positions driven by positive domestic as well as global cues. Sentiments also remained up-beat on the back of above-normal monsoon which has reignited rate cut hopes. However, market turned lower in last leg of trade on reports that the new proposal presented by Greece to avoid debt default was not acceptable to the creditors. Further, investors turned cautious ahead of the June derivative contracts set to expire tomorrow. However, losses remained capped as some support came in with Finance Minister Arun Jaitley’s statement that progress of monsoon in India has improved compared to the predictions, bettering prospects for agriculture and putting the economy on a stronger footing. Meanwhile, Securities and Exchange Board of India (SEBI) on Tuesday halved the time required between listing and closing of an initial public offering (IPO) to six days. The stock market regulator also eased the framework for start-ups to raise capital from the stock market. On the global front European markets after positive opening turned cautious and traded mostly in red, though Asian Markets rallied on Wednesday. Back home, the weakness in Indian rupee too weighed on the sentiments. Selling in metal counter too dampened the sentiments as traders booked profit after previous session’s gains. Stocks related to power space too ended lower despite Union Minister of State for Power and Coal (independent charge), Piyush Goyal saying that all the coal blocks in the country will become operational in the next couple of months. Finally, the BSE Sensex declined by 74.70 points or 0.27% to 27729.67, while the CNX Nifty lost 20.70 points or 0.25% to 8360.85.