Benchmarks to open in green ahead of macro-economic data

Indian markets ended higher on Tuesday as buying was seen across the board led by gains in banks, auto, and metal stocks. Today, the markets are likely to extend previous session’s gains with positive start amid firm global cues and traders will be eyeing government release of Index of Industrial Production (IIP) and Consumer Price Index (CPI) later in the day, in a bid to map economic activity. Investors will be getting encouragement with principal economic adviser at the finance ministry Sanjeev Sanyal’s statement that Indian economic growth is poised to bounce back after slipping to a more than six-year low of 4.5% in the July-September quarter as the government has taken measures to prop up investments and consumer demand. Some support will also come with Finance Minister Nirmala Sitharaman’s statement that the government has taken several steps, including tax refund scheme and enhanced credit to exporters, to boost outbound shipments. Market participants will also be reacting to the Reserve Bank of India’s (RBI) data showing that investments by Indian firms in foreign countries in January 2020 rose by nearly 40% to $2.10 billion on a yearly basis. Meanwhile, the government has approached the National Company Law Appellate Tribunal seeking additional 270 days to complete the resolution process of 105 IL&FS group companies. There will be some buzz in the sugar stocks with report that Indian sugar production estimates for the 2019/20 season are unlikely to be revised upwards by much from 26 million tonnes, when the Indian Sugar Mills Association (ISMA) meets to review figures towards February-end. Gems and jewellery industry stocks will be in focus with the Gem Jewellery Export Promotion Council (GJEPC) report showing that gems and jewellery exports witnessed a 8.45% decline in January to Rs 21,146.59 crore as against Rs 23,099.57 crore a year ago. There will be some reaction in logistics industry stocks with ratings agency Moody's Investors Service’s statement that coronavirus outbreak in China is expected to have a minimal impact on the Indian ports its rates due to low China-related throughput they handle. There will be lots of important earnings announcements too, to keep the markets in action.

The US markets ended mostly higher on Tuesday as Chinese officials said the deadly coronavirus epidemic could be contained by April. Asian markets are trading mostly in green on Wednesday amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak has kept investors wary.

Back home, after two days fall, Indian equity bourses came back in green terrain on Tuesday. The start of the day was fabulous, amid reports that Finance Minister Nirmala Sitharaman met industry representatives on the proposed direct tax dispute resolution scheme that provides opportunity to taxpayers to pay outstanding taxes and get waiver of interest and penalty. Some support also came with Finance Minister Nirmala Sitharaman’s statement that bad loans of public sector banks (PSBs) came down to Rs 7.27 lakh crore at the end of September 2019 from Rs 8.96 lakh crore at the end of March 2018. Key indices held their notable gains during whole trading session, on account of positive cues from the global markets. Traders got encouragement, after the Reserve Bank of India (RBI) announced detailed rules for exempting incremental car, home and micro, small and medium enterprises (MSMEs) loans from maintaining cash reserve ratio (CRR). The street also got some relief with Agriculture Minister Narendra Singh Tomar’s statement that India is on track to become self-sufficient in production of the protein-rich commodity and will further boost the output to meet global demand. Finally, the BSE Sensex gained 236.52 points or 0.58% to 41,216.14, while the CNX Nifty was up by 76.40 points or 0.63% to 12,107.90.