Markets to make mildly soft-to-cautious start on weak global cues

The Indian markets despite some mid day choppiness surged in the last session, extending their gains for yet another day. Today the start is likely to be mildly soft tailing the weakness in the other global markets and the major bourses will consolidate. Though, there will be some support to the markets, restricting any major fall, with Moody's Investors Service stating that Indian economy will grow at 7.5 percent in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices. The agri related stocks will be in limelight today with Prime Minister Narendra Modi unveiling the operational guidelines for the Pradhan Mantri Fasal Bima Yojana. Textile sector too will be buzzing, as the government is expecting Rs 30,000 crore investment in 74 textile parks and is planning to announce a new textile policy by April this year. Minister of State for Textile Santosh Gangwar has said that we are mainly focusing on manufacturing of value-added products and export-oriented goods that will benefit the economy. There will be some action in NBFC companies too, as the Reserve Bank revised guidelines for NBFC factor companies stipulating that there should be board approved limit for underwriting commitments with a view to mitigate credit risk.

The US markets snapping their gaining streak ended lower in last session, though the crude moved higher but trade remained relatively choppy. There was some concern with a Conference Board report showing a second straight monthly decrease by its index of leading US economic indicators. The Asian markets are mostly in red with some of the indices trading lower by over a percent, led by losses in energy stocks, as crude declined again. Japanese market was down by over two percent as the yen strengthened against euro.

Extending their winning streak for the second day in a row, Indian equity benchmarks ended the session with a gain of over a percent on Thursday. It turned out to be a rather volatile day of trade as the indices rebounded after drifting to lower levels in the noon session and sustained position build up was witnessed across the board. Sentiments got a boost after global ratings agency Moody's Investors Service rehashed faith in the Indian economy. According to agency, country’s economy will grow at 7.5% in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices.  Some support also came with the report that India's current account deficit (CAD), is likely to narrow to 0.7 per cent of GDP in the current financial year from 1.3 per cent in FY'15. However, investor remained cautious with the report that foreign Institutional Investors (FIIs) continued their selling spree as they sold net Rs 560 crore on February 17, 2015. On the global front, Asian markets ended in green on Thursday as crude oil prices advanced, while European stocks wobbled on Thursday in early deals. Back home, the benchmark got off to a rollicking opening as investors rejoiced after crude oil prices extended gains on hopes that big producers will cap production. Sentiment was also buoyed by a rise on Wall Street, where U.S. shares advanced for the third straight day, helped by some recovery in oil prices and encouraging economic data. The indices in no time climbed to intraday highs and traded around the psychological 23,700 (Sensex) and 7,200 (Nifty) levels through the morning trades. But the optimism soon started showing signs of easing and profit booking in few sectors and mixed trade in European markets weighed down the local bourses. Yet, final hour buying ensured that the key indices not shut shops near the intraday highs. Finally, the BSE Sensex surged by 267.35 points or 1.14% to 23649.22, while the CNX Nifty rose 83.30 points or 1.17% to 7,191.75.