Markets to make a cautious but a positive start

The Indian markets remained in jubilant mood in last session, extending gains on broad based buying. Today, the start of the new week is likely to be in green with major bourses further enlarging their gains, though traders will be a bit cautious too ahead of the release of national income figures for fourth quarter, as well as for 2015-16, due on Tuesday. India Ratings and Research has meanwhile said that the economic growth is expected to be 7.5 percent in 2015-16, lower than advance estimate of 7.6 percent by the Central Statistics Office. Some buzz can be seen in infra stocks, as Finance Minister starting his 6-day visit to Japan aimed at attracting investments from Asia's second biggest economy, has said that a number of Japanese investors have shown keen interest in investing in India’s infrastructure growth story. Steel stocks too will be buzzing with global industry body World Steel Association’s (WSA) report that India, the world's third largest steel producer, was among the top 10 importers of the alloy last year.

There will be lots of earnings announcements too, to keep the markets in action. Tata Motors, NTPC, IPCA Labs, Aurobindo Pharma, Bajaj Hindusthan, Bajaj Electricals, Bata India, Bharat Electronics, Berger Paints, Shree Renuka Sugars, Amtek Auto and Bhushan Steel, are among many to announce their numbers

The US markets made a positive close in last session, with major averages recovering from their lowest levels in about two months, despite the Federal Reserve Chair Janet Yellen, hinting at the likelihood of a summer time interest rate hike. The Asian markets have made a mixed start and some of the indices are trading marginally in red, though the Japanese shares surged around a percent after yen extended its slump against the dollar with Federal Reserve chief stating that rate hikes could come in the next few months.

Back home, Indian benchmark indices carried forward their northbound journey for yet another session on Friday, on the back of slew of positive news and strong earnings from index companies. BPCL stocks jumped over eight percent, hitting a record high, after the state-run oil marketing company beat Q4 earnings estimate and announced a 1:1 bonus share issue, while Jet Airways rose after the country's second-biggest airline by passengers reported an annual profit for the first time since 2007 and a year ahead of schedule under its 2014 turnaround plan. Investors remained on the optimistic mood from the start of the trade with the global rating agency Fitch in its Global Economic outlook stating that India's economic growth will accelerate to 8 percent by 2018-19 fiscal as gradual implementation of structural reforms will contribute to higher growth. The report further highlighted that India's GDP will grow 7.5% in fiscal year ending March 2016 and improve to 7.7% in the current fiscal year and further to 7.9% in the fiscal year ending March 2018.  Also, some boost came with Commerce Minister Nirmala Sitharaman stating that it is 'possible' for the country to reach top 50 in the World Bank's Doing Business ranking in the next few years. India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from 2014, according to the latest World Bank's Doing Business report.  Mirroring the optimism, foreign investors have bought Indian shares worth a net $119.73 million so far this month, taking this year's inflows to $1.92 billion. Besides, hopes of economic recovery, better than expected corporate results this quarter, strength in rupee and prediction of above average monsoon also lifted sentiments higher. On the global front, Asian markets ended modestly higher on Friday as investors maintained a cautiously optimistic outlook, while European markets traded lower in early deals. Back home, the benchmark got off to a positive start in the morning trade as investors were largely influenced by the supportive leads from Asian markets. The bourses further capitalized on the momentum and spurted in afternoon trades on the back of broad based bottom fishing in undervalued stocks. Finally, the BSE Sensex surged 286.92 points or 1.09% to 26653.60, while the CNX Nifty rallied 87 points or 1.08% to 8,156.65.