Markets to get a cautious start ahead of exit poll results

The Indian markets pre-empting a feavourable poll outcome went for a huge rally in last session and benchmarks ended at record high. Today, the start is likely to be cautious as the last phase of polling has started, though trade may turn volatile in the mid of the day coming near to the exit poll results. There will be some cautiousness, as apart from the elections cues, lots of macroeconomic data will be up for release. IIP and CPI data will be announced after the market hours. CPI for the month of April and Industrial Production data of March are due for release and it is expected that IIP would remain subdued for some time to come including this month. Meanwhile, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said that rapid implementation of GST and reduction in fiscal deficit should be the thrust areas for the new government that will help the country achieve 7-7.5 percent growth. There will be some buzz in the markets, as the Securities and Exchange Board of India (SEBI) has said that it will review delisting rules, responding to concerns from market participants that current regulations make the process of buying out minority shareholders difficult and expensive. Realty stocks may see some buying interest on a report that amid gloom in the sector, PE investments in realty in the first quarter of 2014 was highest since 2009. Auto sector too may sigh a relief , as the Heavy Industries Ministry has reportedly said to press for continuation of excise relief for the auto sector in the full Budget, which is likely to be presented in July by the new Government. There will be lots of important result announcements too, Ballarpur Inds, Balrampur Chini, D B Corp, Indian Bank, Just Dial, TajGVK Hotels, Torrent Power and TV Today will be among many to report their earnings. The US markets ended higher in last session as the technology shares rebounded and also as the US wholesale inventories rose more than expected in March. The Asian markets have made mostly a soft start as the Chinese President Xi Jinping’s statement that nation needs to adapt to a 'new normal', indicated that the country is adjusting itself to slower growth. Back home, Indian markets came into party mood earlier than expected, while there is still one phase of election to go, traders lapped up shares from all across the board and benchmarks after a muted start, gained momentum rallying around three percent to record highs on Friday, ahead of exit poll results next week. Markets showed a one way movement with not even an iota of profit booking seen throughout the day and the bulls going berserk in the final hours ended only near the high points of the day. The global cues were not very supportive, and while the US markets ended mostly lower, Asian indices remained in cautious mood as a tense situation in Ukraine prevailed and also after Chinese producer prices slumped more than estimated in April to 1.8 percent from a year earlier and compared with 2.4 percent gain in March. Later the European markets too made a flat-to-soft start, as investors weighed corporate earnings. Back home, the markets witnessed an unexpected rally to finish the week on a high note, it was a rally led by the bluechips that took the markets out of the week’s slumber. All the heavyweights witnessed good buying interest led by Reliance Industries which moved up by around 4%, nearing Rs 1000 mark after a long time. But the massive rally enveloped all the sectors and all the sections of the market, contributing equally and barring defensive healthcare all the sectoral indices on the BSE ended considerably higher, with banking, realty, power and oil & gas hogging the limelight. Auto sector too moved higher despite Society of Indian Automobile Manufacturers (SIAM) reporting that domestic passenger car sales declined by 10.15 per cent to 135,433 units in April compared with 150,737 units in the corresponding month a year-ago. However, the Motorcycle sales last month grew 8.06 per cent to 911,908 units from 843,909 units. Finally, the BSE Sensex rushed by 650.19 points or 2.91%, to 22994.23, while the CNX Nifty surged by 198.95 points or 2.99% to 6,858.80.