Markets to see some recovery after seven session’s of drubbing

The Indian markets despite another good effort closed lower for the seventh straight session, though today the last trading session of the week, start is likely to be in green and the markets may see some recovery tailing the global peers. On the domestic front traders will be taking support with RBI Governor Raghuram Rajan’s statement that the current account deficit (CAD) in the current fiscal will come down to $56 billion, less than 3 percent of GDP, and lower than the government estimate of $70 billion and $88 billion reported last year. Though, he said that the 2 percent industrial growth in September is disappointing, but hoped that the economic situation would improve in the second half of the fiscal on the back of good monsoon and exports. Traders will also be eyeing the movement of rupee, which after Rajan’s statement strengthened and is likely to keep its momentum going. Meanwhile, there will be some buzz in jewellary and gold stocks as the government has further slashed the import tariff value of gold to $ 417 per ten gram. There will be some action in hotels stock, as the foreign tourist arrivals in October stood at 5.89 lakh, up 5.94 percent from the year-ago period.

Also there will be lots of important result announcements to keep the markets buzzing. Alembic, Amara Raja, Anuh Pharma, Austral Coke, D B REALTY, Electrosteel Steels, GVK Power, Hanung Toys, HDIL, HCL Infosystems, IRB Infra, IVRCL, Jaiprakash Associates etc will be announcing their numbers today

The US markets shrugging off the early weakness closed with good gains and Dow and the S&P 500 managed to reach new record closing highs. There were some positive result announcements that turned the market moods cheerful. The Asian markets have made a mixed start with some of the indices recovering from their last session’s drubbing.

Back home, Indian markets remained lackluster after six straight days of fall on Wednesday, though they bucked the global trend and overlooking the disappointing IIP data for September and surge in CPI inflation to double digit and moved in green terrain but the mood never looked firm and traders remained cautious on global concern that US Federal Reserve will soon begin scaling down its asset buying program. But there was complete trend reversal in second half that took the markets even lower from where they started, ending in red for the seventh straight day. The global markets though gave a soft cue with US markets ending mostly lower on indication that Fed will go for stimulus tapering soon. The Asian markets remained concerned too and snapping two sessions’ gains, most of the indices in the region closed with sharp losses as there was concern of Fed’s probable decision to taper. The European markets too made a somber start and declined for the second day in a row awaiting data that may show euro-area industrial output fell. Back home, the Indian markets went for a gap-down start tailing the weakness in the global peers and in a knee-jerk reaction to the lower than expected Industrial Production numbers, which grew by 2% compared to a contraction of 0.7% in the corresponding period last year but remained much lower than the expected 3%.Also, driven by food prices, the annual consumer price inflation quickened to 10.09% in October from 9.84% in September, both the indices seemed extending the fall for the seventh day as the Nifty slipped below the 6000 mark. However, reversing the course of action, the markets bounced back in green in the early few minutes of trade, though trade was not smooth even afterwards, as the benchmarks kept moving in and out of the red line lacking any major supportive cues. Rupee showed some strength, recovering from its continuous fall and from almost breaching 64/$ mark on speculative RBI intervention, but traded in a tight band above the 63/$ mark. Markets got a fillip from the inline results of PSU lender State Bank of India (SBI), the bank reported NII increase of 11.6%, however its net profit for the quarter ended September 30, 2013 fell by 35.1% from a year earlier to Rs 2,375 crore, mainly due to higher provisions amidst deteriorating asset quality. But what happened in the final hours of trade were mere repetition of what has been going for the past more than a week and benchmarks encountered heavy selling at the highest points of the day, which took the markets once again in the red terrain. Broader markets too remained in sober mood since morning and ended with cut of over half a percent. Finally, the BSE Sensex lost 87.51 points or 0.43%, to settle at 20194.40, while the CNX Nifty declined by 28.45 points or 0.47% to settle at 5,989.60.