Indian Markets To Open On A Flat Note

After witnessing a good up-move in 2013, global equity markets are showing some signs of consolidation now. On 7th January 2012 most of the markets witnessed marginal decline after the investors wanted to take some profits off-the table.  European markets as well as the US markets closed in red. US stock prices retreated from five-year highs achieved on Friday 4th Jan 2012.  While the Dow Closed marginally down by (0.38 %), S&P 500 was down 0.31%). Primary reason was, profit booking as no one wants to take a bold step ahead of US earnings season which kicks off today with aluminium maker Alcoa reporting its quarter results. In addition the Small Business Optimism Index and Consumer Credit Growth Data is expected today.

Impact is seen on the Asian Markets also with most of the leading equity indices trading in red.  Here also investors are applying caution ahead of corporate earnings season for the December 2012 quarter. In addition, the investors are also looking for cues from European Central Bank's policy meeting this week.  As a result Shanghai Composite is trading in negative Zone (Down 0.90%) and Hang Seng down (0.54%).  Even the indices like Nikkie is Down 0.76 % followed by Taiwan 0.75% and KOSPI down 0.35%. Only Jakarta Composite is trading in green with marginal gains of 0.29%.  As regards some news from the Asian markets, Reuters reported that, China's annual economic growth may have quickened to 7.8 per cent in the fourth quarter. Reuters poll showed, snapping seven straight quarters of weaker expansion, but the recovery is likely to be tepid and the economy may need continued policy support. The data is due out on Jan. 18. Further, Samsung, the world’s largest maker of mobile phones and TVs, reported higher-than-estimated fourth-quarter earnings.

As for the Indian markets, with no Major announcement in sight equity markets are expected to witness a flat opening today. Rather the SGX Nifty is also trading on a flat note (up by only 6 points).  We expect the markets to remain range bound this week. There are quite a few reasons like, December 2012 quarter earnings season is ahead. Further many important macro economic factors like (IIP and Inflation Data) are expected to be announced going ahead in the current week.  Hence we expect a range bound trading in this week.