Markets to extend the gaining momentum with a positive start

The Indian markets spurted in the final hours and the benchmark indices posted gains of about half a percent in last session. Today, the start is likely to be in green on sanguine global cues. Traders will be getting support with the India Meteorological Department (IMD) stating that the country is all set to receive above-normal monsoon rains this year with a long-period average of 106 per cent. The Met department said that conditions are becoming favourable for the onset of monsoon and it would hit the Indian coast in the next 4-5 days.  Also, there will be some encouragement with Finance Minister Arun Jaitley’s statement that India will attempt to keep the proposed Goods & Services Tax ( GST ) rate as moderate as possible and the government will push for passage of the bill introducing the levy in the upcoming monsoon session of Parliament. Finance Minister has also said that the government will push ahead with its reform agenda to retain the fastest growing large economy tag and help India move towards becoming "a more developed economy". There will be some buzz in the infra stocks, as the Reserve Bank of India (RBI) has  allowed NBFCs to refinance any existing infrastructure and other project loans by way of take-out financing, without it being considered as restructuring.On the same time good monsoon forecast will boost the consumer goods and auto stocks.

The US markets showing another turnaround after initial fall, made a positive close in last session, with traders looking ahead to the release of the closely watched monthly jobs report on Friday. Early decline was mainly induced by the decrease in crude prices after OPEC meeting failed to result in an agreement on a new output target. The Asian markets have made mostly a positive start, tracking the rebound in the US markets. The Japanese market was moving higher after yen pulled back from its strongest level since mid-May.

Back home, Indian equity indices showed smart recovery despite opening the day in red territory as they managed to outclass most of the regional peers in Asia and Europe by good a margin. Sentiments got a boost with Organization for Economic Cooperation and Development (OECD) in its Global Economic Outlook stating that India's growth rate is expected to hover near 7.5% this year as well as next even as many emerging market economies continue to lose momentum. Further, appreciation in the rupee against dollar too supported sentiments. Reversing its three-day downward trend, Indian rupee recovered by 20 paise to 67.23 against the US dollar at the time of equity markets closing on fresh selling of the American currency by exporters. Besides, some support also came in with Economic Affairs Secretary Shaktikanta Das stating that India has done well on fiscal and economic parameters and the GDP growth can touch 8 per cent in the current fiscal with good monsoon, global headwinds notwithstanding. Das also said overall macroeconomic numbers and fiscal parameters of the country are 'very very robust’. On the global front, Asian stocks ended mixed on Thursday after surveys showed global manufacturing activity and demand remain weak, while European shares steadied, with investors avoiding taking large positions ahead of the European Central Bank's policy meeting. Back home, the local benchmark indices got off to a soft start as the indices showed signs of consolidation in early trade, ahead of the European Central Bank (ECB) and Organization of the Petroleum Exporting Countries (OPEC) meeting scheduled today. Thereafter, the key indices remained choppy for most part of the day but saw a sudden spurt in buying in late afternoon trades post the sanguine European markets opening. Finally, the BSE Sensex gained 129.21 points or 0.48% to 26843.14, while the CNX Nifty rose 39 points or 0.48% to 8,218.95.