Markets likely to start new week on positive note

Indian markets snapped three-day losing streak on Friday and ended higher with gains of around 1.3 percent each. Gains across sectors, led by IT, financial and oil & gas shares, lifted the headline indices. Today, the start of new week is likely to be positive tracking gains in global markets. Investors will be eyeing WPI data to be out later in the day for further direction. Traders will be taking encouragement with outgoing chief economic advisor K V Subramanian’s statement that Indian economy is expected to see a double-digit growth in 2021-22 and between 6.5-7 per cent in the next financial year. The CEA said that he does not expect commodity inflation will taper the V-shaped recovery going forward. Some support will come as Commerce and Industry Minister Piyush Goyal said Indian economy is back in action and it is clear from several indicators such as rising exports and increasing foreign direct investment (FDI) inflows into the country. Also, World Economic Forum President Borge Brende said he expected India to hit a double-digit growth next year while it celebrates its 75 years of independence and prepares for its G20 presidency. However, weak macro-economic data may weight on the markets. Traders may be concerned as Industrial production growth slipped to 3.1 per cent in September, mainly due to the waning low base effect while mining and manufacturing sectors performed well. Additionally, Retail inflation after remaining on downtrend for four months moved a tad up in October to 4.48 per cent due to an uptick in food prices and higher cost of motor fuel. There will be some cautiousness as foreign portfolio investors (FPIs) were net sellers in the Indian markets to the tune of Rs 949 crore in the first half of November. As per the depositories data, they pulled out Rs 4,694 crore from equities between November 1-12. Besides, the Reserve Bank said India’s forex reserves decreased by $1.145 billion to $640.874 billion for the week ended on November 5 on a fall in currency and gold assets. Coal industry stocks will be in focus with a private report showing that India's coal import rose by 12.6 per cent to 107.34 million tonnes in the first six months of 2021-22. The country had imported 95.30 million tonnes (MT) of the coal in April-September 2020-21. Meanwhile, Equity shares of three companies - Policybazaar & Paisabazaar operator PB Fintech, Sigachi Industries and SJS Enterprises will make their stock market debut on the bourses today, November 15, 2021.

The US markets ended higher on Friday with market-leading growth shares kick-starting indexes’ climb as investors looked past disappointing U.S. economic data. Asian markets are trading mixed on Monday as US stock futures gained, though investors were cautious ahead of a batch of Chinese economic data due later in the day.

Back home, Indian equity benchmarks snapped 3-day losing streak with strong gains on Friday, tracking positive global cues. Gains in TECK, IT and Telecom stocks pushed the headline indices higher. Equity markets made a gap-up start, as sentiments got a boost with Niti Aayog Vice-Chairman Rajiv Kumar’s statement that Indian economy is expected to grow by more than 10 per cent in the current fiscal supported by a record kharif crop and bright rabi prospects. According to Kumar, significant increase in exports will also boost economic growth and employment generation. However, benchmarks erased some initial gains in morning deals, as some cautiousness came with a private report that India’s widening current account deficit (CAD), driven by the massive spike in commodity prices led by crude oil, is set to put pressure on the fragile recovery. Traders also remained on sidelines ahead of the macro economic data -- industrial production and inflation data -- scheduled to be announced later in the day. Key gauges resumed their uptrend and were back near the day's high trajectory in afternoon deals, as buying spread across the sectors. Some optimism also came with Union Minister of State for Finance Bhagwat Karad’s statement that buoyancy in Goods and Services Tax (GST) collection in October shows the Indian economy, adversely affected by the coronavirus pandemic, is on the path to swift recovery. Indicating the impact of festive buying, GST collection remained above Rs 1 lakh crore for the fourth month in a row at over Rs 1.30 lakh crore in October. Domestic sentiments were positive after Reserve Bank of India Governor Shaktikanta Das said that RBI Retail Direct Scheme and Reserve Bank Integrated Ombudsman Scheme will provide further impetus to India's journey towards a more inclusive and responsive financial system. Traders took note of report that Commerce and Industry Minister Piyush Goyal said India is looking at reciprocal and equitable access to foreign markets through free trade agreements, which the country is negotiating with its trading partners. Finally, the BSE Sensex rose 767.00 points or 1.28% to 60,686.69 and the CNX Nifty was up by 229.15 points or 1.28% to 18,102.75.