Markets likely to get a positive start of week’s last trading session

The Indian markets made a smart come back in last session after BSP chief announced her support to the government in the Rajya Sabha on the vote on FDI in multi brand retail. Today, the enthusiasm is likely to continue and the markets may make a good start with government all set to sail through today’s vote in the Upper House, where it is in a minority. Though there may be some cautiousness too, unless the drama unfolds. There is likely to be buzz on the street with SEBI asking stock exchanges to provide a list of eligible stocks for the Rajiv Gandhi Equity Savings Scheme (RGESS) which was introduced in this year's budget to encourage small, retail investors to put money in stocks. Stock exchanges will also be furnishing a list of eligible exchange traded funds and mutual fund schemes on their websites. The government has announced tax benefits to new investors who invest up to Rs 50,000 a year in this scheme. Investors whose gross total income for the financial year in which the investment is made under the scheme is less than or equal to Rs 10 lakh can avail tax deduction under RGESS. The ailing IT stocks are likely to get some boost despite the strength in rupee, as the IT industry body Nasscom has said that the fall in tech stocks was no reflection of the industry's future.

The US markets closed higher on Thursday ahead of the monthly jobs report scheduled to be released on Friday. Though, the traders were encouraged with Labor Department's report showing a bigger than expected drop by initial jobless claims in the week ended December 1st. Most of the Asian markets have made a positive start taking cues from the US market. Chinese market has gained over a percent in early trade, heading towards the biggest weekly gains since September.

Back home, the Indian markets witnessed a face saving trend reversal in final hours that led the major indices into green at the closing. It can be called a volatile day of trade with markets getting a modest gap-up start after the government making it to Lok Sabha, rejecting opposition brought motion that sought withdrawal of its decision to allow foreign direct investment in multi-brand retail.  However, within minutes of opening bell, all enthusiasm was overtaken by the concern that the government in the Rajya Sabha might find it difficult to muster the numbers. The trade that had remained in consolidation phase for last couple of days on the FDI issue, lost traction and suffered sharp profit booking with Sensex and Nifty breaching their crucial levels of 19200 and 5850 respectively, there was gloom once again on the street, as the government ran short of numbers in the Upper House. Apart from the political development, the investment banker, Credit Suisse lowering economic growth of India to 5.9 per cent from 6 per cent for the fiscal year ending March, too turned out to be mood dampener for the markets. The global cues mostly remained positive, as the US markets ended mixed overnight, while most of the Asian markets ended in green and the European markets too made a green start. Back home, the trade remained lackluster throughout the session after the initial slump and traders once again adopted a wait and watch stance. Profit booking was seen in the sectors that have been moving higher in last couple of days, while the retail stocks that came into jubilant mood in morning after the Lok Sabha vote, returned to their cautious mood. Broader indices that tried to hold the markets for some time, too gave up to intense selling pressure. However, towards the end of the trade, market took a sudden u-turn after Bahujan Samaj Party chief Mayawati said that her party will vote in favour for FDI in multi-brand retail in the Rajya Sabha. Traders once again went on a buying spree at lower levels on expectations that the FDI in multi-brand will be approved by the Rajya Sabha with support from the Bahujan Samaj Party. On sectoral front, high beta realty index after witnessing early session’s profit booking, once again returned to the lime light and gained by around 2%. Power and banking too gained over a percent on BSE. On the other hand IT sector once again remained the laggard with Cognizant's regulatory filing, triggering worries whether the outsourcing industry may need to budget for another year of slow to moderate growth in 2013. Tech sector too lost about a percent on BSE, as the sector heavy weight Bharti Airtel kept reeling in red, losing another over one and half a percent. Finally, the BSE Sensex gained 94.94 points or 0.49% to settle at 19486.80, while the S&P CNX Nifty rose by 30.40 points or 0.52% to end at 5,930.90.