Markets to get a cautious start; Infosys numbers eyed

The Indian markets showed a splendid performance in last session with a triple digit rally, major indices participated in the global rally with vigor and across the board buying was witnessed after Bernanke's remarks indicating that highly accommodative monetary policy will be in place for the foreseeable future. Today is the big day for the Indian markets, though there is some cautiousness in the region but the local markets will be concentrating on the IT bellwether Infosys’ first quarter numbers, traders will be eyeing some green shoots with the return of its Co-founder NR Narayana Murthy as executive chairman. However, street is expecting the company to cut its annual sales forecast to 7.5% from its earlier projection for as much as 10% growth. There will be some cautiousness on the economy front too, as the IIP numbers which would be announced after market hours, is expected to be dismal at around a growth of 1.5 percent. Meanwhile, Commerce and Industry Minister Anand Sharma has asked corporate America to have faith in the Indian system and help establish a defining partnership between the two countries. There will be some buzz in the oil and aviation stocks on report that the European Union will levy a 4.7 percent duty on jet fuel imports from India in addition to cargoes from the Middle East.

The US markets remained in rally mood on Thursday and major indices surged by over a percent extending the upward trend seen in recent weeks, shrugging off the report of unexpected rise in jobless claims during the passing week.The Asian markets have made a mixed start with some of the indices in the region running out of steam with fresh evidence of weakness in the world's second biggest economy China.

Back home, buoyed by firm global cues, stock markets in India displayed an awe-inspiring performance on Thursday. The frontline equity indices rallied vehemently by around two percentage points and not only extended their gaining streak for the second successive session but also soared to highest levels in more than a month. After the gap-up opening, the frontline gauges went on to capitalize on the momentum and there appeared not even an iota of profit booking in the session. Benchmarks managed to fervently gain strength to strength, to end above their important psychological 19,650 (Sensex) and 5,900 (Nifty) bastions. Sentiments remained sanguine since start of the trade as supportive cues from US markets provided the much needed support to local markets initially. Mood remained up-beat after Federal Reserve Chairman Ben Bernanke declared that US stimulus measures would continue. Back home, market participants remained in cheerful mood on report that the foreign institutional investors (FII) bought shares worth Rs 75.46 crore while domestic institutional investors were net buyers worth Rs 28.78 crore on July 10, 2013. Buying in metal counter too supported the up-move as stocks like Hindalco Industries, Sesa Goa, Sterlite Industries, NMDC, Tata Steel, JSW Steel and Hindustan Zinc all edged higher as global commodity prices jumped after US Federal Reserve Chairman Ben Bernanke’s comments. Meanwhile, banking shares gained on expectations of mark-to-market gains following a decline in bond yields. A rise in bond prices, which move inversely to yields, boosts the value of bond holdings of banks.  Software and Technology counters too rallied ahead of Q1 results of Infosys, the bellwether stock of the IT index, this Friday that will kick-start the first quarter earnings season. Additionally, stocks of Jewellery exporters like, Rajesh Exports and Shree Ganesh Jewellery too remained on buyers’ radar on report that government is considering incentives for gold jewellery exporters hit by restrictions imposed on import of the metal to contain current account deficit. Finally, the BSE Sensex surged 381.94 points or 1.98% to settle at 19676.06, while the CNX Nifty climbed by 118.40 points or 2.04% to end at 5,935.10.