The Indian markets surged in last session, with benchmarks rallying over a percent, supported by some good earnings and strength in rupee ahead of the Fed policy meeting outcome. Today, the start of the penultimate day of F&O expiry is likely to be a bit cautious, as the global cues are not very supportive and traders will be mainly concentrating on earnings announced after the market hours yesterday and lots of important ones to be announced today. Traders will be concerned with global rating agency Moody's warning to the government over the bad loan situation. The rating agency believes that rising credit profile of corporate India may pose a rating risk to the country. It has said that India faces the risk of sovereign debt levels climbing higher if economic growth isn’t robust enough and could ultimately put pressure on the government’s ability to fund itself. Meanwhile, the Supreme Court has asked the government to "reform" the banking system to prevent huge write-offs of bad loans and also to ensure people are not allowed to run away after default in repaying the loans. There will be some buzz in the PSU stocks, as the government will sell 11.36% stake in NHPC through an offer for sale (OFS) to raise about Rs 2,700 crore in an early start to this fiscal year’s Rs 56,500-crore disinvestment programme.
There will be lots of important earnings announcements to keep the markets buzzing. Bharti Airtel, Yes Bank, JSW Energy, Exide Industries, CEAT, GATI, KPIT, Sadbhav Engineering and Kansai Nerolac etc will announce their numbers.
The US markets made a mixed closing in last session, after going through a choppy trade, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement on Wednesday. The Asian markets have made mostly a lower start led by the decline in technology stocks after Apple Inc. reported its first quarterly sales drop in more than a decade. However, the Chinese markets were showing some gains in early deals.
Back home, a session after displaying a distressing performance, Indian benchmark indices managed to pull through a dazzling performance by rallying over a percentage points on Tuesday, as better than expected earnings including Maruti Suzuki India lifted mood, while gains in European shares and a recovery in crude prices also helped to improve sentiments. Market gains were also buoyed by report that India might surpass China in attracting foreign direct investment (FDI) this year, in terms of percentage of its GDP, as the gap in inflows between the two has been narrowing on the back of ongoing reforms in the country. Some support also came with statement of Economic Affairs Secretary Shaktikanta Das, who pledging a strong focus on the execution of Budget announcements and ensuring that there are no delays in investments by key ministries, said that India plans to further liberalise rules for overseas investors as the government looks to reduce the need for approvals. On the global front, markets in Asia made a mixed finish, while European shares advanced in early trade after some encouraging company results. Back home, after witnessing sluggish trade in previous session, the local benchmark indices started the day on weak note as investors were largely influenced by the pessimistic sentiments prevailing in the other regional markets. Besides, depreciation in rupee values against the dollar and persistent selling by domestic financial institutions have also negatively impacted sentiments. But the frontline indices slowly and steadily started gathering steam and surged by around half a percent by late morning trades. The bourses further capitalized on the momentum and spurted in afternoon trades on the back of broad based bottom fishing in undervalued stocks. However, a mild profit booking in dying moments of trade ensured that the key indices shut shops off the intraday highs. Finally, the BSE Sensex surged 328.37 points or 1.28% to 26007.30, while the CNX Nifty rallied 107.60 points or 1.37% to 7,962.65.
