Markets to make a positive start on sanguine global cues

The Indian markets made another modestly positive close in last session, with Nifty nearing 8750 level. Today, the start is likely to be in green on positive global cues and traders will be getting some support with report that Prime Minister Narendra Modi targeting to roll out the ambitious GST on April 1 next year, has directed that all steps required in this direction should be completed before that date. He has also said that GST Council would need to have intensive meetings to be able to make timely recommendations relating to its mandate. However, there will be some concern too with the exports declining for the second consecutive month in August by 0.3 percent to $ 21.51 billion due to dip in shipments of products like petroleum and leather. The imports too contracted by 14 percent to $29.91 billion, leaving a trade deficit of $7.67 billion in the month under review. There will be some buzz in the infra sector, as the Union Minister Nitin Gadkari has said that the government will soon launch three expressway projects - Delhi-Amritsar-Katra, Delhi-Jaipur and Vadodara-Mumbai- soon at a cost of about Rs 1,32,000 crore. The PSU oil marketing companies too will be in action, after Petrol price was on Friday hiked by 58 paise a litre while diesel rate was cut by 31 paise per litre in line with international trends.

The US markets bounced back and rallied in the last session supported by and easing concern about interest rate hike by the Federal Reserve and surge in the tech sector led by Apple. The Asian markets have made mostly a positive start, though many of the indices are not trading and there was still concern about the strengthening Japan’s currency and extended losses in oil amid concern about a glut.

Back home, Indian equity markets traded on a sluggish note for most part of the session, but once again managed to eke out modest gains by the end of trade, as the benchmark indices clawed back into the green terrain in the last on getting some supportive leads from the European markets. Sentiments also got some support with report that Prime Minister Narendra Modi has reviewed preparations for roll out of the new Goods and Services Tax (GST) regime, possibly from April 1 next year, with Finance Minister Arun Jaitley and his team making a presentation on the milestones achieved and the road ahead. Adding the optimism among investors, Agriculture Minister Radha Mohan Singh said the country’s foodgrain output is expected to touch a record in the ongoing 2016-17 crop year. The government has set a target to achieve a record foodgrains production of 270.10 MT this year. Though, several market participants seems to have adopted a wait-and-watch approach to the global sentiment which is playing between cautious and optimism over the FOMC meet early next week. On the global front, most of the Asian markets remained under pressure during the session, while European markets edged higher in early trade. Back home, after getting a firm start, the local benchmark indices slipped in negative territory in late morning session as investors turned jittery tracking weak Asian cues and overnight losses on Wall Street after crude oil prices eased. Thereafter, the frontline indices traded in tight range near neutral line, altering between positive and negative territory, for most part of the session due to lack of encouraging leads. However, some lower level buying in frontline blue-chip stocks along with supportive leads from European markets helped the indices to end the session on optimistic note. Finally, the BSE Sensex ended up by 40.66 points or 0.14% to 28412.89, while the CNX Nifty gained 15.95 points or 0.18% to 8,742.55.