Markets to get a gap-down start on feeble global cues

The Indian markets mainly triggered the decline in equity markets after showing a sharp decline in last session. Today, the start is going to be no different and markets will get a gap-down start tailing the feeble global cues. Traders will also be concerned with India's economy growing by 7.3 percent in the third quarter ended December 2015, compared to 7.7 percent growth in the second quarter. However, Central Statistics Office (CSO) has said that Indian economy will grow at a 5-year high of 7.6 percent in the fiscal ending March, compared with 7.2 percent a year earlier, overtaking a slowing China, on the back of improvement in manufacturing and farm sectors. Traders may also get some support with a private report stating that consumer sentiments in India rose for the first time in the last four months by 1.2 percent to 109.8 in January as households have been relatively upbeat about the purchasing environment. There will be lots of earnings announcements to keep the markets buzzing.

The US markets slumped in last session, extending the sharp move to the downside seen last Friday after the crude prices moved lower, while some traders stayed on the sidelines amid a lack of major US economic data. The Asian markets are still not trading in full strength and those which are trading are showing deep cuts, with Japanese market plunging by close to 5%.

Back home, Indian barometer gauges witnessed blood bath with both the major indices losing around one and a half percentage points and ending below their crucial 7,400 (Nifty) and 24,300 (Sensex) levels. After listless near their neutral lines for most part of the day’s trade, domestic gauges crashed like house of card in the last leg of trade, as uncertainty over the US Fed stance led to a global sell-off. Further, investors opted to remain on sidelines ahead of the announcement of key macro-economic data that includes December quarter gross domestic data (GDP), consumer inflation data (CPI) for the month of January. Market participants failed to get any sense of relief with IMF chief Christine Lagarde’s statement that she hoped Indian Government would be able to implement a series of 'critically important' economic reforms including GST for unleashing the country's growth potential. Also, traders failed to draw any solace with Finance Minister Arun Jaitley’s statement that India continues to be one of the fastest growing economies in the world, but there is still potential to grow at a much faster pace. Finance Minister has further said that the Centre and states need to work together to put the country on a high growth path even as states pitched for higher allocation to meet additional outgo towards pay revision of their employees. Selling got accelerated after European counters made a weak start, though major Asian indices remained closed. Back home, selling was both brutal and wide-based as none of sectoral indices, barring realty and consumer durables, on BSE were spared. Counters, which featured in the list of worst performers, include Software, technology and oil and gas. Software space edged lower tracking the sharp decline in technology shares on the Nasdaq. Steel and banking counters, which gained momentum after the government set a minimum import price for steel products to check dumping from countries such as China and South Korea, too edged lower as investors booked profit in last leg of trade. Finally, the BSE Sensex declined by 329.55 points or 1.34% to 24287.42, while the CNX Nifty dropped by 101.85 points or 1.36% to 7387.25.