Markets to see some recovery with a positive start

The Indian markets deepening their plunge lost another over a percent in last session. Today, the start is likely to be in green and some recovery can be seen after the recent falls, on supportive global cues. Also, as the Finance Minister Arun Jaitley amid global uncertainty has said that it is important for India to emerge out of the crisis stronger as it is on a much higher and stabler footing than other nations. Jaitley said that India is 'relatively unimpacted' by some of the factors that have caused the global crisis. There is likely to be buzz in the cement, aluminium and steel stocks, as they will now be able to participate in coal block auction. The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has laid down a new framework to make the coal available in a fair manner to the end-users through auction. Infra stocks too are likely to be in action, as the Union Cabinet on Wednesday cleared the proposal to allow railways to form joint venture (JV) companies with state governments to mobilise resources for speedy implementation of rail projects. Considering the huge funds required to execute the projects. Shipping stocks will be buzzing on reports that the Baltic Dry Index, the benchmark for dry bulk shipping freight, has fallen to as low as 300 points. There will be lots of important result announcements to keep the markets ticking.

The US markets made a mixed closing in a volatile last session, as traders digested the release of a mixed batch of U.S. economic data as well as a sharp jump by the price of crude oil. The Asian markets have made mostly a positive start as crude extended gains, however the Japanese market was in red as yen strengthened against dollar.

Back home, the carnage in Indian stock markets prolonged for yet another session, as the benchmarks continued to sway to the tune of depressing global developments and deposed another over a percentage point on Wednesday. The drop in oil prices to 12-year lows has sent shudders through world markets, helping wipe trillions of dollars off share valuations and even raising fears of recession. Besides, there were no positive surprises from the third quarter earnings on the domestic front, while in the overseas markets global oil majors have reported weak earnings. Depreciation in Indian rupee also weighed on the sentiments. The rupee again broke below the 68-mark by depreciating 28 paise to trade at 68.26 against the dollar in today’s trade due to increased demand for the American unit from importers and banks. The sentiments were also under pressure on reports that Foreign Institutional Investors sold shares worth Rs 113.98 crore, while the Domestic Institutional Investors sold shares worth Rs 323.23 crore on February 02, 22016. Moreover, investors failed to get any sense of relief from the report that activity in India's services sector increased at its fastest pace in over a year and a half in January as demand accelerated, allowing firms to build up a much bigger backlog of orders. The Nikkei/Markit Services Purchasing Managers' Index rose to 54.3 in January from 53.6 in December, the seventh straight month above the 50-level that distinguishes growth from contraction. On the global front, Asian shares tumbled on Wednesday, European stocks followed a weak Asian session markets. Back home, Indian benchmarks started the session on a weak note mirroring losses in the global equities as oil prices continue to move south on growing supply glut. Thereafter, the indices traded in the small range for most part of the session, though some recovery emerged in early afternoon session on account of lower level buying, but the final hour selling washout that recover and took the indices for a ride to the lowest part of the session. Finally, the BSE Sensex slumped by 315.68 points or 1.29% to 24223.32, while the CNX Nifty lost 93.75 points or 1.26% to 7,361.80.