Markets to get a positive but cautious start on mixed regional cues

The Indian markets joined the global rally and posted decent gains in last session with the major benchmarks reclaiming their crucial levels, gearing for an all time high. Today, the start is likely to be in green but a bit cautious on mixed regional cues, though traders will be getting some support with the centre and states, moving towards rolling out GST from April 1, agreeing on a timetable for deciding on the tax rate and completion of legislative work, but differences remained on the turnover limit for exemption from the new tax. Meanwhile, Minister of State for Finance Arjun Ram Meghwal, stressing that the new indirect tax regime is a major tool for improving ease of doing business has said the government will be able to implement Goods and Services Tax (GST) from April 1, next year. In other positive news, India's kharif harvest is poised to jump 9% to 135 million tonnes, beating a six-year-old record. There will be some buzz in export oriented stocks, as the government has extended fiscal incentives to more items such as marine products at higher rates under a scheme with a view to boosting exports, which remain in the negative zone. The total support extended by the government under the Merchandise Exports from India Scheme (MEIS) has been enhanced to Rs 23,500 crore per annum from the present Rs 22,000 crore. The telecom space too will see some action with Vodafone Group Plc pumping in a record Rs 47,700 crore of overseas investment into its Indian operation to take on Reliance Industries’ Jio.

The US markets extended their gains in last session and the tech-heavy Nasdaq once again reached a new record closing high. Traders continued to react positively to the Federal Reserve's monetary policy announcement of Wednesday . The Asian markets have made a mixed start with some of the indices trading modestly in red, paring their last session gains as the dollar strengthened and oil retreated from a two-week high.

Back home, Indian benchmark indices showcased a scintillating performance on Thursday, by rallying around a percent point amid strong global cues. Sentiments remained up-beat since start as key bourses opened with a huge gap on the up-side and traded in tight band throughout the session as the Federal Reserve opted to hold its key short-term interest rate steady. Investors across the Asian region welcomed the news as a rate hike would have pulled money out of emerging markets. On the domestic front, sentiments got boost with the report that country’s current account deficit (CAD) narrowed to $ 0.3 billion, or 0.1 percent of GDP, in the first quarter of 2016-17, significantly lower than $ 6.1 billion or 1.2 percent of GDP in Q1 of 2015-16 on account of lower trade gap. Some support also came with a private report stating that rural demand is likely to turn up in the coming months largely driven by better rains, and Kharif farm income, which is expected to jump 12.3 percent this year. Another private report indicated that India's foodgrain production is estimated to rise by 9 per cent to an all-time high of 135.03 million tonnes in the kharif season (summer sown) of 2016-17 on record output of rice and pulses. Investors also took note of the report that regulator SEBI is considering allowing some categories of Foreign Portfolio Investors (FPIs) to directly trade in Indian markets, starting with debt segment. The move aims at making it easier for overseas investors to invest in India. Meanwhile, Logistics stocks edged higher on reports that Commerce Ministry is working on a proposal to enhance the logistics competitiveness of exporters and is discussing it with the railways as well as port authorities. Railway stocks remained on buyers’ radar for second consecutive day, after the Cabinet approved merging Railway Budget with the general Budget and doing away with distinction of plan and non-plan expenditure. Finally, the BSE Sensex surged by 265.71 points or 0.93% to 28773.13, while the CNX Nifty gained 90.30 points or 1.03% to 8,867.45.