The Indian markets ended higher in the last session on positive global cues and taking support from the gains in the local currency. Today, the start of the new week is likely to be in green on once again positive cues from the global markets. The traders will first react to the weak US jobs data and on the domestic front another sub 5% yearly growth estimates. The Central Statistics Office has stated that Indian economy is likely to grow 4.86% in the year to March, though its a recovery from the 10-year low of 4.5% growth in 2012-13. Also, the Prime Minister's Economic Advisory Council Chairman (PMEAC) C Rangarajan has said that the decline in growth rate has bottomed out and there is a probability that the GDP estimate for 2013-14 may be revised upwards. However, there will be some cautiousness too, as the HSBC's composite emerging markets index of manufacturing and services purchasing managers’ surveys slipped for the second month running to 51.4 in January, the slowest pace in four months, dragged down by sluggish services sectors in the BRIC quartet of big developing countries. There will be some buzz in the power stocks after an inter-ministerial group (IMG) recommended for cancelation of 19 mines which includes mines of JSPL, Essar Power, Tata Group and Rel Infra. Public sector banks which are on two days strike starting today, may see some upmove as the RBI has allowed banks to utilise up to one-third of the countercyclical provisioning buffer held by them during last fiscal for making specific provisions to cover bad loans.
There will be lots of important result announcements too, to keep the markets buzzing. 3M India, Apollo Hospitals, Astrazeneca Pharma, BGR Energy, Ceat, Esaar India, Essar Oil, IFCI, India Cements, Jaiprakash Associates, Jindal Stainless, NMDC etc are among the many to announce their numbers today.
The US markets ended higher despite getting a mixed set of jobs data, while the non-farm payroll increased weaker than expected, the unemployment rate fell to its lowest level since October 2008. Most of the Asian markets have made a green start and the Japanese market has taken the lead despite reporting a record current account deficit for December.
Back home, buoyed by firm global cues, both the Indian equity benchmarks extended their gaining streak to third straight day, recapturing their crucial 6,050 (Nifty) and 20,350 (Sensex) bastions. Sentiments remained up-beat since morning amid firm global cues. Some boost also came on the buzz that the Securities and Exchange Board of India (SEBI) specified a circuit limit of up to 20% for all publicly traded stocks that are included in any index derivatives. The market regulator said the move is aimed at protecting stocks against excessive volatility risks. However, volatility ruled the roost in the late trade, as key benchmark indices regained positive zone soon after a sudden steep slide pushed them to negative zone for a brief period in afternoon trade. However, gains on the up-side remained capped as investors remained cautious ahead of advance GDP estimates for current fiscal 2013-14, likely to be announced after market hours and the government is likely to lower its estimate of 5% growth forecast for the financial year 2013-14, because of slower-than-expected recovery in industrial growth. Some cautiousness also crept in, as the National Council of Applied Economic Research (NCAER) on Thursday lowered the GDP projection for the current fiscal to 4.7-4.9 percent due to exchange rate depreciation. Asian markets rallied, while the European counters too made a positive opening. Back home, sentiments got some support from currency front where Indian rupee traded higher on corporate dollar inflows at 62.33 at the time of equity markets closing versus its previous close of 62.36. Shares of pharmaceutical companies like, Aurobindo Pharma, Sun Pharmaceutical Industries, Biocon, Dr Reddy’s Laboratoreis, Divi’s Laboratories, Lupin etc. remained on buyers radar after reporting a robust net profit growth for the quarter ended December 31, 2013. Additionally, steel stocks viz. Tata Steel, SAIL, JSW Steel, Jindal Steel and Power edged higher after ArcelorMittal, the world's biggest steelmaker, announced strong Q4 December 2013 results and said earnings will continue to climb in 2014. Finally, the BSE Sensex gained 65.82 points or 0.32%, to settle at 20376.56, while the CNX Nifty ended up by 26.90 points or 0.45% to settle at 6,063.20.
