Markets to make a green start tailing good global cues

The Indian markets after a choppy session closed marginally in red in last session, there was not much cues and traders remained on sidelined ahead of the US jobs data. Today, the start is likely to be in green responding to weak nonfarm payroll data from US. Traders will be closely eyeing the movement of rupee which depreciated to its four week low in last session, as all the emerging-market currencies have strengthened today on speculation the Federal Reserve will hold off cutting monetary stimulus until next year. The PSU banking stocks will keep buzzing with the Finance Ministry finalizing the bank-wise capital infusion plan aggregating Rs 14,000 crore. However, Finance Minister P. Chidambaram termed the rising number of bad loans in the banking sector as "unacceptable," even as he expressed satisfaction at the growth in bank lending in the first quarter. There will be some disappointment in the jewellary stocks, as the Finance Minister has ruled out the possibility of lifting a ban on import of gold coins and medallions and asked banks to strictly follow guidelines restricting inward shipments of the metal.

There will be lots of result reaction too, to keep the markets buzzing. ACC, Ambuja Cements, Exide Inds, Hero MotoCorp, Hindustan Zinc, Jet Air India, L&T Finance Holdings, Raymond, SKS Microfinance are among the many to announce their numbers today.

The US markets made a green closing, reacting positively to the weaker than expected September jobs report that reinforced expectations that the Federal Reserve will maintain its asset purchase program at the current pace. The Asian markets have made an all green start tailing the US markets and some of the indices are trading higher by close to a percent in morning deals.

Back home, Indian equity benchmarks ended the Tuesday’s trading session slightly in the red, as investors across the globe remained sidelines ahead of US jobs data that could shape expectations as to whether the Federal Reserve will start withdrawing stimulus this year. In Indian context traders were also cautious ahead of RBI policy review next week. Moreover, investors’ sentiments were dampened after Indian rupee depreciated against dollar due to month-end dollar demand from importers. However, losses remained capped as some support came in from, Chairman of the Economic Advisory Council to Prime Minister C Rangarajan’s statement that Current Account Deficit (CAD) will go down well below $70 billion this fiscal. There was some good news for the manufacturing sector too, as the Commerce and Industry Ministry is reportedly working on a proposal on giving interest subsidy to the sector and the Department of Industrial Policy and Promotion (DIPP) is considering an interest subvention of 3-4 percent, which could help in shoring up growth in the sector. Global cues too remained subdued with most of the Asian equity benchmarks ending in the negative terrain. European counters too traded choppy in early deals. Back home, some support came in after Yes Bank reported better-than-expected Q2 numbers. The bank reported a rise of 21.25% in its net profit at Rs 371.13 crore for the quarter ended September 30, 2013 as compared to Rs 306.08 crore for the same quarter in the previous year. Meanwhile, sugar stocks like Bajaj Hindusthan, Shree Renuka Sugar, Balrampur Chini, Mawana Sugars and Rana Sugars all edged higher for second day in a row on report that India’s sugar output dropped by 4.5% to 25.14 million tonnes in 2012-13 marketing year ended last month, due to lower crushing and recovery levels in key producing states. Finally, the BSE Sensex declined by 28.92 points or 0.14%, to settle at 20864.97, while the CNX Nifty lost 2.15 points or 0.03% to settle at 6,202.80.