Markets to see some recovery with a positive start

The Indian markets suffered sudden and sharp decline in final hour of trade in last session, on profit taking amid political concern. Today, the start of the markets is likely to be in green and some recovery can be expected in early hours with Nifty reclaiming its crucial 8550 mark. Traders will be getting some support with the Organisation for Economic Cooperation and Development's (OECD) statement that it expected India's growth to be stable, even as it forecast a slowing of the Chinese economy. Also, the government will bring the much-awaited bill on GST for passage in the Rajya Sabha, despite doubts of the opposition Congress allowing passage of the Constitution Amendment Bill. The auto stocks will be in action, after industry body SIAM reported that car sales in India grew for the ninth month in a row in July. Sales of cars rose 17.5% to 162,000 units from the year-ago period.  The oil & gas stocks too will be buzzing, as the Oil Minister Dharmendra Pradhan has said that government will "any day" announce a decision to allow market price for part of gas discoveries made in future from difficult fields. There will be some buzz from the primary markets too, as Biocon’s research arm Syngene International will make its debut on the stock markets today. The issue got overwhelming response and was subscribed 32.03 times.

The US markets rallied in last session, with traders going for bargain buying after slew of recent falls. Buying interest was also generated by renewed optimism about an end to the seemingly endless Greek debt crisis, as the nation is likely to conclude negotiations on a third bailout deal by early Tuesday. The Asian markets have once again made a mixed start and some of the indices are trading lower by about half a percent. Though, the Chinese markets were trading higher after China’s central bank became the latest to devalue its currency.

Back home, Monday’s turned out to be a disappointing session of trade for the Indian equity markets as market participants booked all their initial gains in dying hour of trade. The domestic benchmarks traded graciously for most part of the trades in tight band, but a sharp wave of selling, which emerged in last lag of trade, dragged the key gauges in red. Earlier, markets recaptured their crucial 8,600 (Nifty) and 28,400 (Sensex) as further fall in crude oil prices boosted sentiment. Some support also came with a survey report of CII ASCON, which has said that the economy is showing signs of a turnaround, albeit moderately, on the back of continued policy actions, implementation and enhanced business and consumer confidence. Sentiments turned sour and markets entered into red terrain as traders remained concerned about the political logjam in the parliament, as both the houses were adjourned once again and it was announced that Joint committee report on Land Bill will be tabled in winter session of Parliament with Just four more working days left in the ongoing monsoon session of Parliament. Investors also remained cautious ahead of key macroeconomic numbers due to be released later in the week. The government will release inflation based on the Consumer Price Index (CPI) data and industrial production data for June 2015 on August 12 and inflation based on the Wholesale Price Index for July 2015 on August 14. Sentiments also remained dampened on report that foreign direct investment (FDI) in services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, has dipped 15% to $488 million during April-May 2015 as compared to $574 million during same period of last year. On the global front, European markets were exhibiting mixed trend, while the Asian markets ended on similar note. Back home, depreciation in Indian rupee against dollar too weighed down sentiments. Finally, the BSE Sensex declined by 134.67 points or 0.48% to 28101.72, while the CNX Nifty lost 39.00 points or 0.46% to 8525.60.