Markets to get a positive start on supportive global cues

The Indian markets closed modestly lower in the last session, global worries weighed on the market sentiments and after the European debt crisis massive earthquake and aftershocks in Indonesia raised global concerns. Today the start is likely to be cautious but positive, the recovery in US markets after their biggest one day fall and good going in the other regional markets are likely to support the markets. There will be an important economic number coming out that may impact the market movements, the IIP data for February will be announced today, it is expected that industrial output probably slowed a tad from January's surge, as growth in the manufacturing and consumer non-durables sectors likely moderated. Traders will also be eyeing the Aviation stocks, ahead of the much awaited cabinet meet to decide on a proposal to allow foreign carriers to invest in local airlines. On the same time the power and coal stocks too will be in focus as the government would take a call on coal minister Sriprakash Jaiswal’s proposal to switch over to an ad valorem regime of royalty for coal and lignite. Jaiswal has proposed to levy an ad valorem rate of 14 per cent for coal and 6 per cent for lignite. There will be buzz from the primary market too as the NBCC shares will list on the bourses today. The issue was a part of government's divestment programme of Rs 40,000 crore for FY12. The issue was oversubscribed 4.93 times and the issue price has been fixed at higher end of price band of Rs 90-106 a share.

The US markets recovered on Wednesday, rebounding from five consecutive days of fall, on the back of encouraging start of the earnings season, as Alcoa Inc. reported a first-quarter profit instead of a widely expected loss. The Asian markets have mostly made a positive start with commodity stocks giving a boost on higher commodity prices.

Back home, Indian stock markets concluded an extremely volatile session on a quiet note as the benchmark equity indices closed with marginal losses after an earthquake with a magnitude of 8.9 on Richter’s scale struck under the sea off Indonesia's northern Aceh province and triggered Indian Ocean tsunami alert. The pessimistic sentiments prevailing in global spilled over local markets in early morning trades as markets participants largely remained influenced by the disappointing overnight close in US markets which registered their biggest one day fall in the year 2012 on Tuesday amid concerns about European debt crisis resurfacing after borrowing costs for Euro-zone nations rose ahead of the start of first quarter earnings season.  After plunging around a percent in morning trades, the markets recovered a great deal from the low point of the day as the frontline gauges moved into the green terrain. Sentiments in domestic bourses improved following the European markets opening, which rebounded a session after witnessing hefty risk aversion. The domestic markets immediately came off their intraday highs after reports showed tremors of the quake were felt in many Indian regions including Kolkata, Bangalore and Tsunami warnings for 28 countries were issued. However, the frontline indices recovered in the last leg of trade to settle slightly below the previous closing levels after reports that the fears of Tsunami are less likely because the Indonesian earthquake moved horizontally and not vertically. The key gauges eventually ended around the psychological 5,200 (Nifty) and 17,200 (Sensex) levels as investors were seen buying defensive Healthcare and FMCG stocks while the Banking and IT counters too gained some ground before the close of trade. The PSU oil marketing companies like HPCL and BPCL closed in the green terrain on the back of sharp decline in international crude oil prices, which plummeted to a near 8-week low. Besides, the stocks from Aviation sector like Kingfisher, SpiceJet and Jet Airways skyrocketed in the session amid reports that foreign airlines might soon be allowed to pick up stakes in Indian carriers. On the other hand, the upside in local markets was capped by persistent profit booking in Metal and Oil & Gas counters while Capital Goods and rate sensitive Realty pockets too bore the brunt of selling pressure. Besides, stocks from the cement sector plunged sharply after reports showed that Competition Commission of India`s (CCI) ruling on alleged cartelization by companies is expected shortly, with a negative verdict likely to hurt profits and pricing power of manufacturers. Finally, the BSE Sensex lost 44.4 points or 0.26% to settle at 17,199.40, while the S&P CNX Nifty declined by 16.75 points or 0.32% to close at 5,226.85.