Market May See Volatile Session

Finally the Indian markets showed some rebound and showed some buying interest during yesterday’s trading session. The market has gained on yesterday trading session after a straight seven days negative closing. The market has corrected almost 5 percent in last seven trading sessions due to expected BJP’s defeat in Delhi elections, weakness in earning session and bleak global sentiments. However, the next big trigger for the market is the Union Budget apart from the corporate earnings.

Yesterday, the BSE Sensex showed almost half a percent recovery from its Monday closing. The rally was lead by rate sensitive stocks where BSE Bankex, BSE Auto gained almost 1.75 per cent each. The market was too supported by the consumer durable, metal and power stocks.

The European markets were too closed higher on the news that the Greece will proceed with the privatization of the country’s main port. The German benchmark index DAX and French benchmark index CAC closed higher by 0.85 and 0.96 per cent to 10,754 and 4,696 respectively on Tuesday. Previously, the newly elected Greece government had some talks with lenders by promising to roll back many austerity measures and reforms that were a condition of its bailout. This has created considerable nervousness across the global market sentiments. The UK benchmark index FTSE closed down by 012 per cent to 6,829.

On US market front, the US market gained yesterday after a two trading session losing streak. The US markets were opened positives on the positive news from Europe on Greece front. The Dow Jones Industrial Average surged almost 0.8 per cent to 17,869. The S&P 500 jumped almost 1.1 per cent to 2069, while the Nasdaq Composite Index advanced 1.3 per cent to 4,788.

Today morning, the Asian markets were trading in negatives admitting concerns over the Chinese economy. The Chinese central bank said in its quarterly policy report that it would maintain its “steady monetary policy" and create a "neutral and moderate" financial environment for China's economic restructuring. The market indices Nikkie 225, Hong Kong Hang Seng and ASX 200 were trading lower by 59, 1 and 32 points to 17,653, 24,527 and 5,768 respectively. The SGX Nifty too was trading lower by 14.50 points at 8,612.50 in the morning.

We expect marginal negative opening in the domestic markets and can expect a volatile trading session. Few stocks which are expected to declare the quarterly results are Concor, Deepak Fertilizers, Escorts, Godrej Industries, JBF Industries, etc.