Markets to extend the weakness on sluggish global cues

The Indian markets extending their losses snapped the October series on a disappointing note. Traders remained concerned about some weak earnings and Fed’s indication of a probable December rate hike. Today, the start of the new series is likely to be in red tailing the weakness in the global markets, though some recovery can be expected in the latter trade after continuous four days of fall. Traders will be getting some support with the World Bank retaining its India's growth forecast at 7.5 percent in 2015-16, followed by a further acceleration to 7.8 percent in 2016-17 and 7.9 percent in 2017-18, saying it will continue to grow. Markets will also get some encouragement with the Reserve Bank of India’s notification that non-resident Indians (NRIs) can opt to invest in the National Pension System (NPS), the move will help boost dollar inflows into the country. There will be some buzz in the PSU oil marketing companies, as the Petroleum Ministry has asked the Finance Ministry to make excise rates uniform for different categories of domestic cooking gas (LPG). There will be lots of result announcements too, to keep the markets in action.

The US markets ended lower in last session after the pending home sales unexpectedly decreased for the second consecutive month in September. Though, selling pressure remained relatively subdued, as traders continued to digest yesterday's monetary policy announcement. The Asian markets have made a soft start with most of the indices in the region trading lower by over half a percent in early deals, as investors awaited the Bank of Japan’s decision on whether to expand its record stimulus program.

Back home, Indian equity markets truly depicted the choppiness of F&O expiry session on Thursday and after a cautious start extended their southward journey to close with a cut of around three fourth of a percent. Final hour of trade proved to be the curse for the markets and bourses settled below their crucial 26,900 (Sensex) and 8,150 (Nifty) bastions. Sentiments remained downbeat after US Fed in a direct reference put in play a rate hike at its next policy meeting in December. Traders failed to draw any sense of relief from Finance Minister Arun Jaitley’s statement who after India jumped 12 positions to rank 130th in the world on ease of doing business said that the improvement in ranking does not fully reflect the reforms initiated and the position will improve further next year. Selling got extended with European counters making a weak opening, Asian markets ended the session mostly in red. Back home, depreciation in Indian rupee against dollar too weighed down sentiments. On the earning front, Yes Bank rose 2% after reporting a 26.5% rise in net profit for the September quarter due to lower provisions and higher net interest income and other income. However, Just Dial slumped over 11% after its quarterly earnings adjusted for other income missed estimates. Selling continued in banking counter for second day in the row. The PSU oil marketing companies also remained under pressure after the international crude prices surged overnight, though there was some decline in today’s trade in prices after Pemex, the national oil company of Mexico, said it received permission to swap crude oil with the US, possibly ending the US ban on exporting crude. Finally, the BSE Sensex plunged by 201.62 points or 0.75% to 26838.14, while the CNX Nifty declined by 59.45 points or 0.73% to 8111.75.