Markets likely to get a subdued start, may recover in late trade

The Indian markets suffered a decisive blow with benchmark indices losing the crucial support levels and plunging to more than four months low. The global worries coupled with domestic uncertainties pressured the markets. Fresh fears of withdrawal of investments by foreign fund and weakening rupee spooked the markets. Meanwhile, one of the deputy governor’s of RBI has been reported of saying that the Reserve Bank of India’s role in protecting the rupee’s slide is limited despite some anti-market measures. Today, the start is likely to be subdued and the traders will be closely watching the movement of FII’s and rupee for further direction. However, some recovery can be seen in the latar part of the trade as speaking on the Finance Bill in Lok Sabha, the finance minister guaranteed that there was no reason to panic over the country’s economic situation and repeated the government's commitment to keep the fiscal deficit in check. There will be lots of important result announcements while there will be buzz from the primary markets as Tribhovandas Bhimji Zaveri is going to list today.

ABB, Arvind, GVK Power, IRB Infra, NIIT, Ranbaxy Lab, PNB, Union Bank, United Breweries Holdings and Triveni Engineering are among the many to announce their numbers today.

The US markets closed lower on Tuesday and the major indices were down by about half a percent. Though there was a late hour rally but traders remained nervous as political turmoil in Greece renewed concerns about the country's ability to meet the terms of its bailout and remain a member of the euro zone. The Asian markets have made a weak start and most of the indices are trading lower by half to one percent. Political tension in Greece heightened concern of Europe’s debt crisis and weighed on the Asian exporters sentiments.

Back home, a day after witnessing the dead cat bounce, it turned out to be carnage across the Dalal Street on Tuesday as marketmen grew increasingly pessimistic amid increasing uncertainty over the market outlook. Indian stock markets went through a volatile trading session as the benchmark equity indices slipped below the psychological 16,550 (Sensex) and 5,000 (Nifty) levels by the end. The frontline indices gained steam in late morning trades and pared most of their losses to come in close proximity with the previous closing levels. However, nervous market participants resorted to ruthless across the board profit booking following the disappointing start for European stock markets as the uncertainty over European debt trouble was far from over since Greek leaders were busy in cross-party talks to form a government, and with slim chances for a coalition, a new set of elections is likely. The Asian markets too failed to prop up sentiments in the domestic markets as after last session’s brutal rout, stock markets in the Asian region showed modest recuperation but investors lacked conviction to take large bests following the overnight consolidation on Wall Street. Back home, marketmen again turned jittery as the anemic rupee slipped back to 53 against the US dollar despite the Finance Minister deferring GAAR by a year and the central bank’s surprise open market operation (OMO) purchase auction of bonds for Rs 12,000 crore on Monday.  Eventually, the downslide in frontline gauges, which logged their fourth negative close in last five sessions, only ended with the close of trade after suffering a nasty laceration of over two percent. Meanwhile, the gas related stocks like GAIL (India), Indraprastha Gas and Gujarat Gas surged in the session as nearly a month after the conflict between utility firm Indraprastha Gas and the regulator Petroleum and Natural Gas Regulatory Board (PNGRB), the Delhi High Court is expected to deliver its final verdict later in the day. The NSE’s 50-share broadly followed index Nifty got pounded by over two percent to settle just below the psychological 5,000 support level while Bombay Stock Exchange’s Sensitive Index - Sensex got obliterated by over three hundred sixty points to finish below the crucial 16,550 mark. Finally, the BSE Sensex plunged by 366.53 points or 2.17% to settle at 16,546.18, while the S&P CNX Nifty lost 114.20 points or 2.23% to close at 4,999.95.