Markets to make a flat-to-green start on mixed global cues

The Indian markets surged to record highs in the last session and the BSE Sensex touched the record closing highs of 34000. It was the last hour pull back that led the markets higher from the sluggish day of trade. Today, the start is likely to be flat-to-green on mixed global cues. There will be some concern in the markets with the GST collections slipping to their lowest in November as rates were cut on dozens of goods to make the new national sales tax regime more acceptable. Total collections under the Goods and Services Tax (GST) in November slipped for the second straight month to Rs 80,808 crore, down from over Rs 83,000 crore in the previous month. There will be buzz in the India Inc with report that the Securities and Exchange Board of India (Sebi) board will consider proposals to ease compliance norms for insolvent firms - especially with regard to trading, listing and de-listing, and declaring results-at its meeting on Thursday. Tech stocks are likely to remain under pressure following their global counter parts, while the energy stocks too will see some action with the spike in international crude prices.

The US markets made a modestly lower closing in the last session, following the long holiday weekend. Tech heavy Nasdaq was weighed down by a notable decline by shares of Apple. Selling pressure was relatively subdued, however, limiting the downside for the major averages. The Asian markets have made mostly a positive start though trading remained thin in a holiday-shortened week. Energy stocks were higher after oil prices breached $60 a barrel for the first time since 2015 after a pipeline blast in Libya.

Back home, bulls which woke up in last leg of trade mainly helped the benchmarks to end at fresh all time closing highs levels on Tuesday, with frontline gauges ending above their crucial 34,000 (Sensex) and 10,500 (Nifty) marks for the first time ever amid thin volume as most traders are away on year-end holiday. The market’s rally was mainly led by ADAG group’s stocks which surged after Anil Ambani’s announcement that the debt-ridden company has achieved full resolution and is expected to reduce its debt of Rs 45,000 crore to Rs 6,000 crore. Earlier, markets after a positive start turned choppy and traded near neutral lines for most part of the day’s trade. Sentiments remained dampened with report that the overseas investors have pulled out a massive Rs 7,300 crore from the country’s stock markets this month so far, primarily due to rising crude prices and widening fiscal deficit. Investors took note that firming crude oil prices in the global market is likely to cast its shadow on retail inflation, which has began to move northwards after hitting a low of 1.46 percent in June, and may prompt the RBI to hold interest rates at least for some time in 2018. However, markets took U-turn and entered into green terrain in last leg of trade with traders turning optimistic on hopes of revival in quarterly earnings and a favourable Budget. Reports that India looks set to leapfrog Britain and France next year to become the world's fifth-largest economy in dollar terms, too aided sentiments. Traders also took some encouragement with industry body Assocham’s Year-Ahead Outlook report, which has said that India's economic growth may touch 7 percent next year as the government’s policies tilt towards the country’s stress-ridden rural landscape in the penultimate year before the 2019 general elections. It said that against GDP growth of 6.3 percent in the second quarter of 2017-18, the economic expansion may reach the crucial 7 percent mark by the end of September 2018 quarter, while inflation may range between 4 to 5.5 percent towards the second half of the next calendar year with the monsoon being a key imponderable. Some support also came from a private report stating that Indian economy is expected to witness sharp recovery in the January-March quarter and its GDP growth likely to be around 7.5 percent for 2018. Finally, the BSE Sensex surged 70.31 points or 0.21% to 34,010.61, while the CNX Nifty was up by 38.50 points or 0.37% to 10,531.50.