The Indian markets posted gains in last session taking cues from the global markets and ahead of important macro data. Today, the start is likely to be cautious and traders will first react to the mixed set of economic data announced after the market hours. Showing no signs of recovery, Indian industrial production growth rate remained negative for the third straight month, contracting 0.6 per cent in December 2013. However, there was something which could cheer the rate sensitives, as the retail inflation slowed to a two-year low in January to 8.79 percent, its lowest level since January 2012. Though, core retail inflation remained at around 8 percent, which has been deemed uncomfortably high by the Reserve Bank of India (RBI) governor Raghuram Rajan. Today, the railways related stocks may see some recovery after analyzing the interim budget, India Inc has said that the government’s focus on modernisation and expansion of the country’s vast rail network without touching passenger fares and freight rates was a step in the right direction. Today sugar stocks will be in cheerful mood, as the Cabinet Committee on Economic Affairs (CCEA) a subsidy of Rs 3,333 per tonne for exports of raw sugar to boost overseas sales and help the cash-starved industry to pay arrears to sugarcane farmers.
There will be lots of result announcements to keep the markets buzzing, Ajmera Realty, Alok Inds, Arss Infra Proj, Austral Coke, Bombay Dyeing, Dhampur Sug Mills, Essar Shipping, Future Retail, Hindalco Inds, Hotel Leela and Indian Oil Corp are among the many to announce their numbers today.
The US markets made a mixed closing after a day of good surge; trade remained choppy as traders seemed reluctant to make any significant moves amid a lack of major US economic data. The Asian markets after long gaining streak are showing some sign of weakness and most of the indices in the region are trading in red in early deals, led by the Japanese market which is down by around a percent.
Back home, Indian markets after a gap-up opening just managed to hold their gains for the session on Wednesday. The gains were mainly induced by the cheerful global cues and it missed the further push from the domestic interim rail budget. Though, facing a revenue shortfall, Railway Minister Mallikarjun Kharge in his maiden budget was not expected to make any big-bang announcement, but was expected to make changes in the fuel adjustment component for minimum impact on ticket prices. The extremely short budget presentation, marred by interruptions caused by MPs protesting creation of Telangana remained a non event and most of the railways related stocks turned lower after the budget. Earlier the markets made a good start taking cues from the overnight surge in the US markets, the Asian markets followed the trend and all the major indices posted good gains, European markets too continued their bull run and made a positive start. Back home, the markets more or less remained in upbeat mood throughout the day, some selling was seen soon after the Railway budget, but the markets stabilized after minor hiccups. Railway Minister Mallikarjun Kharge kept passenger fares and freight rates unchanged, introduced 72 new trains and said that train services will also start for Vaishno Devi shrine at Katra in Jammu and Kashmir. He also promised a new tariff-setting body and said work on eastern and western freight corridors was progressing well. However, there was some cautiousness too in the market ahead of the Industrial Production and Consumer price index inflation data. Though, the IIP likely contracted for the second consecutive month in December, on weak manufacturing demand after falling by 2.1 percent in November, traders were mainly eyeing the CPI data, as the RBI’s next policy will majorly depend on it. Sensing some positive news, most of the rate sensitives’ remained in upbeat mood since beginning, though realty ended in red. IT sector, one of the top gainers of last session, added to the gains on industry body Nasscom’s forecast that Indian IT-BPM exports will grow 13-15% in 2014-15 to touch $97- $99 billion. Defensive sectors like FMCG and healthcare took a back seat, while the metal stocks too remained in somber mood since beginning. The non sectoral gauge of sugar came under pressure after Cabinet Committee on Economic Affairs (CCEA), for the third time in row, yet again deferred a decision on subsidy for export of raw sugar on account of unresolved difference between the Agriculture and Food Ministry on quantum of subsidy. Finally, the BSE Sensex surged by 85.12 points or 0.42%, to settle at 20448.49, while the CNX Nifty added 21.30 points or 0.35% to settle at 6,084.00.
