Markets to get a green start tailing positive global cues

The Indian markets rallied in a steady trade of last session with benchmarks reclaiming their crucial levels after three days of fall. Today, the start is likely to be in green and the markets will be extending the gains on good global cues. However, there will be some cautiousness too with report of India's merchandise exports contracting for the 10th month in a row, declining by 24.33 percent in September to $21.84 billion. Though, the imports too shrank 25.42 percent to $32.32 billion in September on yearly basis, thus narrowing the trade gap to 10.47 billion from $ 14.47 billion recorded in the same month of 2014.Traders will be getting some support with Finance Minister Arun Jaitley's statement that economic growth could top 7.5 percent in the current fiscal and macroeconomic indicators are positive with declining inflation and twin deficits under control. He also said that even when globally the economic situation is not that good, India's industrial and manufacturing output are showing improvement. Meanwhile, RBI governor Raghuram Rajan has said that the money laundering scandal at Bank of Baroda raises questions on the occurrence of frauds in the banking system and the central bank will need to come up with measures to prevent them. There will be some buzz in the oil marketing companies, as the diesel price in a second consecutive hike has been raised by 95 paise per litre though there has been no change in petrol rates.

The US markets rallied in last session, following the release of a slew of US economic data, while consumer prices fell in line with estimates, a Labor Department report showed an unexpected drop in initial jobless claims. The Asian markets have made mostly a positive start as a run of weaker-than-estimated economic reports from China, Europe and the US scuttled bets on the Federal Reserve raising interest rates this year.

Back home, snapping three day’s losing streak, boisterous benchmarks showcased an enthusiastic performance on Thursday, by rallying around a percentage point. Markets, after a gap-up opening, showed steady trade and there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength, as investors continued their hunt for fundamentally strong stocks. Frontline indices ended near their intraday high levels, settling above their crucial 8,150 (Nifty) and 27,000 (Sensex) bastions, supported by the surge in other global markets. Sentiments remained up-beat 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. Some support came with the government approval of one-time financial assistance for incomplete and languishing national highway (NH) projects. Projects where half of the construction was complete till November 2014 will be eligible for this one-time financial assistance. Global cues too remained supportive with European counters making strong start, while Asian markets ended in green. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Strong Q2 earnings from some of the companies too supported the upmove of the markets. Finally, the BSE Sensex surged by 230.48 points or 0.86% to 27010.14, while the CNX Nifty soared by 71.60 points or 0.88% to 8179.50.