Markets likely to get an opening rally on good global cues

The Indian markets extended the gaining streak on Monday supported by CII survey showing business confidence in India improving from the previous quarter. Today, the start is likely to be positive on supportive global cues though, export related companies may show some subdued trend as India's exports in March fell for the first time since the 2009 global financial crisis due to weakening demand in the United States and Europe. India's balance of payments slipped into negative territory for the first time in three years in the three months through December on shrinking dollar inflows. On the same time the auto companies will be under pressure as, most automakers including Tata Motors witnessed a decline in the sales of the passenger cars during April, dragged by excise duty hike. Tata Motors reported a decline of 7 percent in its total sales including exports in April which stood at 60086 units from 64383 units sold in the corresponding period of last year

Apart from this, there will be lots of important result announcements to keep the markets buzzing. Bharti Airtel, Birla Corp, Century Enka, Hero MotoCorp and Kansai Nerolac are among the many to announce their numbers today

The US markets surged on Tuesday on getting good economic data, US manufacturing grew in April at the strongest pace in 10 months, soothing recent worries about the economy, while the traders were also encouraged with report that China's Purchasing Managers’ Index rose to a 13-month high in April. The Asian markets have made a jubilant start and all the indices are trading with good gains. Encouraging manufacturing reports and gains in exporters have strengthened the sentiments.

Back home, Indian stock markets managed to close in the positive territory on last trading day of the month and extended the gaining streak for the third straight session. The benchmark equity indices, which were gradually gaining momentum since the start and touched the day’s highs in late morning trades, witnessed some profit booking in early noon trades and found support around the important psychological 17,300 (Sensex) and 5,200 (Nifty) levels.  The climb of over three fourth of a percentage point for the frontline gauges appeared even more prominent given the fact that the gains came on a day when most Asian equity indices closed with moderate gains of less than half a percent. Subdued European markets too pressured domestic sentiments and limited the upside chances after reports showed Spain’s economic growth declined 0.3% in the first quarter however, the number was better than expectations of 0.4% decline. On the domestic front, sentiments were supported by CII survey showing business confidence in India improved from the previous quarter but concerns over stagnancy in reforms and rising cost of finance and raw materials remain. Market’s mood was also undermined to some extent after reports showed global rating agency Moody's will be reviewing ICICI Bank, Axis Bank and HDFC Bank for a potential downgrade. Meanwhile, the quarterly earnings announcement from the banking counter remained mixed as on one hand, investors commended Bank of India’s performance which was better than the street’s expectations, while on the other, they punished the Oriental Bank of Commerce for reporting weaker than forecasted numbers. Besides, investors were seen covering hefty short positions in the beaten down IT and TECk counters which rallied around two percent each and supported the frontline gauges. The software services exporting majors like Infosys and TCS spurted to higher levels amid increasing speculations of the US Federal Reserve would employ quantitative easing measures after data showed cooling of US GDP growth, making valuations in the sector more attractive after recent falls. Also, shares of textile companies including Arvind and Alok Industries jumped as reports showed that Indian government lifted a ban on cotton exports and decided to allow further cotton exports in 2011-12 marketing year, ending September. Finally, the BSE Sensex gained 131.47 points or 0.76% to settle at 17,318.81, while the S&P CNX Nifty rose by 39.15 points or 0.75% to close at 5,248.15.The Indian markets remained closed on Tuesday on account of a local holiday.