Markets to get a positive start on the final day of March F&O series

The Indian markets rebounding from their lows made a close of modest gains in last session. Today, the start of expiry day of the March F&O series is likely to be in green, though trade may turn choppy during the course of the day but still the benchmarks are likely to snap the spectacular series with good gains, so far the benchmarks are up by over five and half a percent for the series. Today, there will be buzz in the metals and mining sector stocks after a panel set up by Supreme Court recommended lifting a ban on iron ore mining in Goa, albeit limiting output to 20 million tonnes, about 40 per cent of what the state use to produce before the mining ban. The court will consider the panel’s suggestions today. Also, the government has finally set up a coal regulatory authority through an executive order to bring transparency in the sector, which will advice the government on the principles and methodologies to determine the price. Traders will be getting some comfort with the latest report of credit rating agency Moody's, which said that the sharp fall in India's current account deficit (CAD), will limit its vulnerability to global financial market volatility, though persistently high inflation remains a major risk. India's CAD dropped sharply to $4.2 billion or 0.9% of GDP during October-December 2013 from $31.9 billion or 6.5% of GDP in the same quarter last year.

The US markets failed to sustain their early momentum and major indices ended lower by over half a percent amid renewed worries from Ukraine after Obama warned the international community against adopting a complacent attitude toward Russia. The mixed report of durable goods orders too weighed on the sentiments. The Asian markets have made a mixed start with Japanese market leading the losers list after yen surged against dollar amid concern President Barack Obama will step up pressure on Russia.

Back home, Indian equity benchmarks, despite profit booking in last leg of trade, managed to end the session at their fresh all time closing high levels on Wednesday with Nifty surpassing its crucial 6,600 mark. Earlier, frontline gauges made a gap-up opening to hit a fresh all-time high on the back of strong inflows from foreign institutional investors and supportive cues from global peers. Appreciation in Indian rupee too supported the sentiments. Some support also came from report that foreign institutional investors (FIIs) bought shares worth a net Rs 1223.28 crore on March 25, 2014, as per provisional exchange data. However, market witnessed steep fall in last leg of trade after the ruling Congress party came up with its manifesto for the 2014 Lok Sabha elections promising inclusive growth along with eight per cent growth rate in three years and various tax reforms, but markets recovered and  managed to keep their head above water at the end. Global cues too remained jubilant with the US markets ending mostly higher, most of the Asian equity indices ended in the green terrain, The European markets too made a firm opening on expectation that US durable goods orders probably increased in February, adding to evidence the US economy is improving. Back home, buying in banking related stocks aided the sentiments on report that Reserve Bank of India (RBI) will keep the rates unchanged. Credit rating agencies expect the Reserve Bank of India to maintain the status quo on interest rates in its upcoming policy review. Also, the recent gains made by the rupee are a positive for lower rates as this reduces the scope for imported inflation. Stocks related to auto space too remained on buyers’ radar on report that auto makers are all set to increase prices for the third time this year, not withstanding a sluggish market and recent cut in excise duty, due to inflating operating costs and an unstable currency impacting their margins. Additionally, metal and mining stocks edged higher during the trade on growing expectations that China will take steps to stimulate its sagging economy. Finally, the BSE Sensex added 40.09 points or 0.18% to settle at 22095.30, while the CNX Nifty was up by 11.65 points or 0.18% to settle at 6,601.40.