Indian markets ended slightly higher on Wednesday amid lack of cues from other global markets. Today, the start of session is likely to be flat-to-positive tracking positive leads from Asian peers. Investors will also eyeing the release of Markit Manufacturing PMI for December which will be released later in the day. Traders will be taking encouragement with government data showing that Goods and Services Tax (GST) revenue collection remained above Rs 1 lakh crore mark for the second month in a row with December mop-up rising to Rs 1.03 lakh crore as compared to the year-ago period. Some support will also come with the commerce and industry ministry data showing that foreign direct investment (FDI) into India grew 15% to $26 billion during the first half of the current financial year. Inflow of FDI during April-September of 2018-19 stood at $22.66 billion. However, there may be some cautiousness with a private report that India will struggle to achieve 5% GDP growth in 2020 as the significant deceleration in past few quarters was largely owing to credit squeeze which is a cyclical problem. Also, traders may be concerned with report that as many as 388 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns of more than Rs 4 lakh crore owing to delays and other reasons. There will be some buzz in the NBFCs stocks as the Reserve Bank of India (RBI) has extended, for another six months, existing relaxations for securitization of assets by non-banking financial companies (NBFCs). The move is expected to provide NBFCs with some more breathing space to repair their broken balance-sheets by selling assets and improving liquidity. There will be some reaction in jewellery stocks with ICRA’s report that Jewellery demand is expected to decline by 6-8% in terms of volume following high gold prices and weak consumer demand in 2019-20. Auto stocks will be in focus reaction to their monthly sales numbers. Also, there will be some buzz in the aviation stocks with report that Aviation Turbine Fuel (ATF) prices were increased by 2.6% on January 01 to Rs 64,323.76 per kilolitre from Rs 62,686.51 per kiloliter.
The US markets remained closed on Wednesday for the New Year's Day holiday. Asian markets are trading mostly in green on Thursday buoyed by Chinese markets after Beijing eased monetary policy to support slowing growth.
Back home, Indian equity markets started the New Year 2020 on muted note, with benchmark indices Sensex & Nifty logging marginal gains. The day started on a fabulous note, after Reserve Bank of India said India's current account deficit, a difference between foreign exchange inflows and outflows, narrowed to 0.9 per cent of gross domestic product, or $6.3 billion, in second quarter of current financial year, on account of lower trade deficit. Sentiments also remained positive, as the PHD Chamber of Commerce and Industry (PHDCCI) expects India's economy to rebound in 2020 and inflation to remain benign on account of reforms such as reduction in corporate tax. In noon deals, volatility hit over the street, as the country's fiscal deficit hit 114.8 per cent of 2019-20 budget estimate at Rs 8.07 lakh crore at the end of November, while the growth of eight core infrastructure industries contracted for the fourth consecutive month in November 2019 by 1.5 percent, as compared to same period of last year. However, bourses managed to keep their heads above neutral lines throughout the day, aided with a survey report that with bullish hiring sentiments, private sector players are likely to create seven lakh jobs and the overall increase in salaries is projected to be around 8 percent in the New Year. Finally, the BSE Sensex gained 52.28 points or 0.13% to 41306.02, while the CNX Nifty was up by 14.05 points or 0.12% to 12182.50.
