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Muhurat trading session likely to be cautious but may see some fireworks too

11 Nov 2015 Evaluate
The Indian markets snapped the Samvat 2071 on a weak note with major averages falling for the fifth straight session and losing over around one and half a percent for the day. Today, the special Muhurat Trading session between 17:45 hours and 18:45 hours, on account of Diwali is likely to be cautious. The start of the Samvat 2072 is looking better amid favourable macro trends, and with government once again going for reform push. The government announced key FDI related reforms and liberalisation in 15 major sectors of the economy, the sectors that would benefit are: agriculture and animal husbandry, plantation, mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities. The other sectors likely to see more foreign investments are defence, broadcasting sector, civil aviation, construction development sector, Cash and Carry Wholesale trading/Wholesale Trading (including sourcing from MSEs), single brand retail trading and duty free shops, private sector banking and manufacturing sector.

There will be buzz in the private sector banking stocks, as the government moving to a composite cap of 74 per cent on foreign investments in banks, scrapped the segmentation between portfolio and direct investments.The realty sector too will be in action after the government on Tuesday removed all restriction on foreign direct investments into the real estate and construction sector except for a three-year lock-in period for select projects.

Earlier, the US markets made a mixed closing in last session, though major indices climbed well off their worst levels of the day. Traders grew concerned with a Labor Department report before the start of trading, showing that import prices fell by slightly less than expected in October. The Asian markets too made a mixed closing with some of the indices losing about half a percent after mixed Chinese data. The nation’s industrial production and investment growth slowed further in October, while retail sales defied the weakness, rising more than economists had forecast. Though, European markets made a positive start, extending their last session gains.

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