The Indian markets after losing their momentum in the very early trade, remained in a range and witnessed cut of over half a percent in last session. Today, the start is likely to remain cautious tailing the mixed global cues. However, some recovery can be expected in the latter part of trade, with India's infrastructure sectors clocking their highest growth in 16 months in March 2016, with the index for core industries climbing 6.4 per cent, against 5.7 per cent in February. Also, a private report has said that the Indian economy is expected to clock a GDP growth of 7.4 percent this fiscal largely driven by the lagged impact of a good monsoon and increased consumer spending, supported by pay commission award. There will be some buzz in steel and mining sector stocks, as the Rajya Sabha has approved an enabling legislation to make it easier for mergers and acquisitions (M&A) of steel and cement companies reeling in the aftermath of the collapse in global commodity prices. Once the Bill is signed into law, there will be no bar on the transfer of mining leases.
There will be some important result announcements too, to keep the markets in action. Century Textiles, Alstom T&D, Adani Ports, Adani Power, TVS Motor, GCPL, Godreg Consumer Products, MRF and Cera etc will be reporting their numbers.
The US markets made slight bounce back in a relatively quiet day of trading in last session, mainly due to bargain hunting. Traders were looking ahead to the release of the Labor Department's closely watched monthly jobs report on Friday. The Asian markets have made a mixed start and while the Japanese market was closed, there was buzz in the Chinese market with manufacturing data coming mostly in line with the estimates.
Back home, Indian benchmark indices started the new month on a disappointing note, as they showcased an unenthusiastic performance on Monday and settled with moderate cuts of over half a percent amid weak cues from Japan and after disappointing earnings from major corporates. Sentiment was hit by a report that exports of 17 sectors, over half of the 30 sectors including petroleum products, textiles, man-made yarn and fabrics, engineering and leather, closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand. However, losses remained capped with the report that growth in India's manufacturing sector slowed sharply in April as demand weakened, reinforcing views that the central bank will have to cut interest rates again in coming months. The Nikkei/Markit Manufacturing Purchasing Managers' Index fell to a four-month low of 50.5 in April from 52.4 of March, nearing the 50 mark that separates growth from contraction and the lowest reading of the year. Some support also came with Standard Chartered’s report that India's GDP is likely to grow 7.4% during the current fiscal on the back of increased consumer spending, supported by pay commission awards and lagged impact of a good monsoon. On the global front, Asia markets snapped the first day of the month on a lower note, while the European stocks were marginally in green early trade. Back home, the investors largely remained influenced by the daunting sentiments prevailing in Asian markets. The frontline indices kept losing steam thereafter and even drifted to the lowest point in the session in late morning trades. Afterward, the key indices oscillated in an extremely tight range through the session as market participants remained on the sidelines lacking conviction. Finally, the BSE Sensex declined by 169.65 points or 0.66% to 25436.97, while the CNX Nifty dropped 43.90 points or 0.56% to 7,805.90.
