Markets likely to get a green start on positive global cues

The Indian markets bounced back on Friday and the benchmarks were able to conquer their long lost crucial levels. Today, the start is likely to be good as the global cues are giving positive signals to the local markets after some clarity on a plan to contain the euro region’s debt crisis. The PSU oil companies are likely to remain under pressure as the international crude prices surged on sign of demand improvement, on the domestic front the finance minister Pranab Mukherjee has said that government will continue support oil price burden and it won't slash oil subsidies now, but will phase them out eventually. SBI is likely to see some more upmove as the government has cleared its intention to provide funds to State Bank of India, so that its Tier-1 (equity) capital becomes at least 8%. SBI's Tier I capital adequacy ratio dipped to 7.6% after it set aside funds to meet pension liabilities. The infra stocks too are likely to see some spurt as the urban development minister Kamal Nath has said that Infrastructure spending in India needs to expand to $1 trillion in the next five years as the country's urban population during the next decade is expected to exceed 500 million people. There will be some result reactions for the earnings announced during the weekend and result announcements of some important companies like HDFC, IFCI, Mahindra Lifespace and TCS will keep the markets buzzing.

There is one new listing on the bourses; Financial service company Onelife Capital Advisors (OCAL) will list its equity shares today. The issue was subscribed 1.53 times and the company has fixed issue price at Rs 110, the higher end of price band of Rs 100-110 a share. Onelife Capital Advisors is a financial service company offering Investment Banking services and venturing into Portfolio Management and Equity Broking services. It offers services like Initial Public Offerings, Rights Issue, Buyback of Shares, Follow On Public Offering, Qualified Institutional Placements, Open Offers and other Equity Linked Financing.

The US markets surged on Friday making their best weekly close in more than two years. Good economic reports boosted the morale of the investors and they went for hefty buying. The Asian markets too have made a good start and some of the indices are trading higher by over one and half a percent in early trade after Group of 20 officials endorsed parts of a plan to avoid a Greek default.

Back home, the final day of the week turned out to be a breathtaking rebound for the Indian benchmark equity indices as they not only bounced back strongly from the intraday lows but also managed to overcome the previous session’s consolidation mood. The key gauges staged a powerful rally of over a percent regaining the important psychological 17,000 and 5,100 bastions in the northbound journey. Just when it looked like the key gauges will drift below the neutral line, there appeared a sudden spurt in local sentiments as investors were largely influenced by the rally in European equity indices. Technology stocks across the globe spurted after Google announced earnings which exceeded expectations and fortified buying in domestic software and technology counters, making them the top gainers in BSE sectoral space. Investors also remained optimistic ahead of the meeting of G20 finance chiefs and central banks heads from the world's biggest economies in Paris, amid expectations that there is lot intent to develop a global, sustainable solution to the European debt crisis. Earlier on Dalal Street, the benchmark got off to a subdued start, as investors largely opted to stay on the sidelines amid gloomy global leads that prevailed in US and European markets. The indices failed to take larger strides in morning session as investors awaited the release of monthly inflation numbers. The frontline indices gradually gathered steam post getting the inflation data which were largely in line with estimates. However, the indices slipped after attaining 5,100 and 17,000 levels and started drifting to lower levels in tandem with the European markets. However, the benchmarks bounced back in style in the second half thanks to hefty buying in Technology and Oil and Gas counters, which helped the bourses to settle around the high point of the day. Moreover, the broader markets too settled on positive note but only with moderate gains and underperformed their larger peers. On the BSE sectoral space, buying was evident across the board and investors piled up hefty positions in the Information Technology counter which rocketed by over two and half a percent while the Oil & Gas pocket too gained from strength to strength and climbed by over one and half a percent. On the flipside, the rate sensitive Realty pocket was the top laggard in the space, languishing at the bottom of the table. Finally, the BSE Sensex surged 198.77 points or 1.18% to settle at 17,082.69, while the S&P CNX Nifty climbed by 54.45 points or 1.07% to close at 5,132.30.