Markets to extend gains with a positive start

The Indian markets hit a fresh lifetime high in the last session supported by normal monsoon forecast with FMCG, consumer durables and agri related stocks taking the lead. Today, the start is likely to be in green and the markets will be extending the gains. Traders will be getting some support with Prime Minister Narendra Modi setting up a task force under the chairmanship of the Vice Chairman of NITI Aayog Dr Arvind Panagriya, with an aim to create policies on employment based on credible data. The Prime Minister has directed that this task be expedited so that policies on employment can be formulated with a proper appreciation of impacts, based on credible data. Meanwhile, six months after the announcement of demonetisation by Prime Minister Narendra Modi, the RBI has declined to share details of the note ban process, saying it would be detrimental to the country’s economic interests. The central bank also said that it is also likely to impede future economic or fiscal policies of Government of India. There will be lots off earnings announcements to keep the markets buzzing, the aviation stocks too will be in action as the crude prices have bounced back, while the aviation ministry has said that airfares on the government’s subsidised regional flights will be revised every three months and the subsidy provided, accordingly, will also be changed.

The US markets continued their consolidation mood and once again made a mixed closing with trade turning cautious after US President Donald Trump's abrupt dismissal of FBI Director James Comey. The Asian markets have made mostly a positive start, as a rebound in oil boosted energy producers. Also, the corporate earnings and positive data on the US economy have buoyed sentiment about global growth. The Chinese market was though marginally in red, heading for a seventh decline in eight days.

Back home, Euphoric Indian equities showcased an impressive performance on Wednesday by conquering the crucial 9,400 (Nifty) and 30,200 (Sensex) levels, as shares of consumer goods and agriculture-dependent companies rallied after the country's weather office forecast a higher monsoon rainfall than previously expected. India looks likely to receive above average monsoon rainfall as concern over the El Nino weather condition has eased in the past few weeks, the chief of the India Meteorological Department (IMD) said on Tuesday, raising prospects of higher farm and economic growth. El Nino, a warming of ocean surface temperatures in the eastern and central Pacific that typically occurs every few years and was linked to crop damage, fires and flash floods, faded in 2016. Sentiments also got a leg up after data showed that foreign funds, which were net sellers on the Indian bourses for the past few sessions, made fresh purchases in yesterday's trade. Foreign institutional investors bought shares worth Rs 333 crore in Tuesday's session. Some support also came with the report that Prime Minister Narendra Modi has reviewed progress of key infrastructure sectors including petroleum and natural gas, power, renewable energy and housing. The Prime Minister called for greater emphasis on ethanol blending, and evolution of mechanisms so that farmers can benefit the most from this process. Investors also took some encouragement with the private report that Indian business leaders are the most confident among the world's 10 largest economies. The confidence of Indian leaders rose 3.2 points to 66 in the first quarter of 2017, reversing the decline seen in the fourth quarter of 2016, when confidence dipped in the immediate aftermath of the government's decision to invalidate old high-value currency notes. Finally, the BSE Sensex gained 314.92 points or 1.05% to 30248.17, while the CNX Nifty was up by 90.45 points or 0.97% to 9,407.30.