Market To Continue To Inch Upwards

The Indian markets continue to inch upwards despite of the mixed mood across global markets during yesterday’s trading session. the investors showed good interest in buying mid and small cap stocks after a heavy correction during last couple of weeks. The mid and small cap indices on Bombay Stock exchanges was up by almost 1.5 per cent each. We can see some pre-budget rally which is also supported because of heavy correction in the market during last couple of weeks.

Despite of few concerns across the global economies, the Indian market seems to be at a good position to benefit from improving macro economic factors for its economy and increased global liquidity in days ahead. Presently, the corporate earnings season is little week compared to previous few seasons, however the earnings are expected to improve as the actual implementation of the reforms get started in coming few months. The improvement in the earning will further re-rate the Indian economy showing new highs for the domestic markets.

On European market front, the Greece issue further got intensified as the arguments between the newly elected Greece government and its international creditors are signaling the Greece’s exit from the Eurozone. The Greece’s currunt bailout is due to expire at the end of February month. The Syriza-led Greek government wants its Eurozone partners to give it time and financial flexibility to renegotiate the terms of its bailout. Ahead of the month end deadline, we expect further volatility in the European market till month end. The German benchmark index DAX and French benchmark index CAC closed down by 0.02 and 0.35 per cent to 10752 and 4679 respectively on Wednesday. The UK benchmark index FTSE closed down by 0.16 per cent to 6816.

The US market too showed good amount of volataality in yesterdays trading session. the market was closely following development of the Greece government and its international creditors. The Dow Jones Industrial Average marginal down by 0.04 per cent to 17862. The S&P 500 was almost flat at 2069, while the Nasdaq Composite Index advanced marginally by 0.28 per cent to 4801.

On Thursday morning, the Chinese markets were trading marginal lower due to concerns over corporate earnings season. The Hong Kong Hang Seng index was marginal down by 0.17 per cent to 24273. The Japanese stocks surged by more than 1.6 per cent in today morning as surprisingly strong industrial data and sizeable drop in the yen buoyed the market in its return from a one-day holiday. The SGX Nifty which is pre market opening indicator for Indian markets was trading lower by 14.50 points at 8667.00 in the morning.

We expect marginal up movements in the market I todays’s trading session, but can expect a volatile trading session. Few stocks which are expected to declare the quarterly results are Amtek Auto, Bajaj Electricals, Bajaj Hindustan, BHEL, CESC, Coal India, Gillette, Future Retail, Gitanjali Gems, Glenmark, Indiabulls Real Estate, etc.