Markets to see some recovery on supportive global cues

The Indian markets continuing their declining streak ended modestly in red in last session. Today, the start is likely to be flat-to-green and some recovery can be expected in early deals on supportive global cues. Traders will be getting some support with government measures to control inflation, as the Finance Minister at an inter-ministerial group meeting, in view of spiking pulses prices said that the government has decided to invoke the Rs 500-crore Price Stabilisation Fund that will be used to pay for transportation, handling, milling and processing -- aimed at reducing the cost of imported pulses. Traders will also be reacting to different measures announced by the Cabinet Committee on Economic Affairs (CCEA), late yesterday and infra stocks will be in limelight, as the government has approved one-time fund infusion to revive and complete languishing national highway projects. Though, only those NH projects where 50% construction has been completed till November 2014, will be eligible for this one-time financial assistance. There will be some buzz in the steel stocks on reports that government may extend anti-dumping duty of up to 57.39 percent on certain steel products imported from China, Korea and four other countries, and also from the EU to protect domestic industry from cheap shipments.

Traders will also be reacting to some important result announcements slated for the day. The results which are expected for today are DB Corp, Karur Vysya Bank, LIC Housing Finance,Mastek and MindTree etc.

The US markets ended lower in last session, following the release of disappointing US retail sales data that renewed concerns about the economic outlook. The Asian markets have made mostly a positive start as the weak retail sales data out of US has reinforced expectations that the Federal Reserve will hold off on raising interest rates.

Back home, extending southward journey for third straight session, Indian equity benchmarks ended the choppy day of trade slightly in red. Sentiments remained dampened after IT bellwether Tata Consultancy Services’ (TCS) second-quarter revenue missed street expectation, raising concerns that the company may not be able to continue its trend in coming quarters too. For the quarter ended September 30, TCS' revenue grew 3% sequentially, or 5.8% year-over-year. Meanwhile, the WPI inflation data released during the day indicated a mild uptick of 0.51 per cent in the September WPI inflations, which stood at -4.54 per cent against -4.95 per cent in August. The wholesale fuel prices fell 17.71% from a year ago. Prices of manufactured goods declined 1.73% on year in September. Food prices, however, inched up 0.69% year-on-year last month. However, losses remained capped with Finance Ministry stating that reform measures would continue in order to boost economic activity. Also, Minister of State for Finance Jayant Sinha, allaying concerns of investors over pace of reforms in India has said the government has implemented “game- changing” measures to transform India's economic fortunes and improve the business environment in the country. Global cues too remained sluggish with European counters making sluggish start, while Asian markets too ended in red. Back home, it turned out to be a choppy day of trade where benchmarks made several attempts to break in green and managed to enter into green terrain couple of time but simultaneous profit taking dragged them back in red. Selling in software and technology counters too weighed down sentiments, led by 4.5% fall in TCS post weak Q2 numbers. FMCG counters too remained under pressure after HUL declined around 2% after reporting 2.62% fall in its net profit at Rs 962.24 crore for the quarter ended September 30, 2015 as compared to Rs 988.16 crore for the same quarter in the previous year. The metal pack too ended in red on Chinese concern, after Consumer inflation in China cooled more than expected. Finally, the BSE Sensex lost 66.87 points or 0.25% to 26779.66, while the CNX Nifty declined by 23.80 points or 0.29% to 8107.90.